In an interview with nationally syndicated real estate columnist, Charles Scutt, estate planning guru, Gary Altman, is quoted extensively on the good, the bad, and the ugly when it comes to inheriting real estate.
Altman explains that once ownership of the home is transferred to you, Uncle Sam may deduct federal, state and/or local taxes from the estate if its net taxable worth is more than a certain amount.
“Inheritance tax is imposed on the transfer of assets, including real estate, at death,” Altman says. “The rate is dependent on the relationship between the descendent and the inheritor. Estate taxes, meanwhile, are imposed on the value of the property at death. The Federal government currently has an estate tax for estates in excess of $2 million dollars. Some states have an estate tax, some have an inheritance tax, and some, like Maryland, have both.”
To read the full text of this article, click here.