Estate Tax
They say death and taxes are the only real constant in life. One of the unpleasant but necessary aspect in owning or acquiring real estate is paying the taxes for it. If you recently inherited property, you shouldn’t forget to calculate for the estate tax. The estate tax, or inheritance tax, is a tax imposed on the transfer of property by a deceased person to a living heir, either thru a will or according to the state laws of intestacy. And if you think you can avoid this tax by giving away your property just before dying, think again. There’s also the gift tax, which is imposed on the transfer of property a person gives away during his life.
Since the laws on Estate and Gift Taxes are considered to be some of the most complicated in the Internal Revenue Code, we strongly recommend that you should consult with an estate tax practitioner, who is knowledgeable in this field. If you want to learn more about it, check out this IRS site, that answers some of the most frequently asked questions.