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Will my heirs have to pay an inheritance tax?

If you plan to leave an inheritance to your children, chances are that you want to maximize the amount you leave. This means minimizing any taxes they would have to pay on that gift.

That leads to the question posed in this headline. Thankfully, if your child inherits money or property in California, he or she will not have to pay an inheritance tax. However, if a person inherits property from someone living in a state that does levy a tax on inheritances, he or she will typically have to pay taxes to that state.

This is not to say that you don’t have to worry about taxes. Estate taxes can be a big concern for anyone who owns property in California as well. Even though California also does not impose a state estate tax, federal estate taxes may still be required. Though, you only need to worry about these taxes if your property is valued at more than $5.49 million, as of 2017.

If you are not exempt from filing a federal estate tax return, keep in mind that there are numerous ways to minimize your tax obligations. You can start making annual gifts to friends and/or family; you can transfer assets into a trust; you might also give some money to charity to reduce the size of your estate.

Minimizing tax obligations is a top priority for many people when it comes to estate planning, and with good reason. You probably would prefer to leave your money and property in the hands of loved ones and deserving parties, rather than give it to the government.

In order to examine the tax implications of your estate planning goals, and to minimize these obligations, it can be wise to discuss the specifics of your estate and your wishes with an experienced attorney. 

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Law Office of Jeffrey B. Pape, P.C.
642 Pollasky Avenue
Suite 100
Clovis, CA 93612

Toll Free: 800-797-5677
Fax: 559-299-0920
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