Inheritance Tax
A tax on what a beneficiary receives, usually scaled to how closely related they were.
What Inheritance Tax means in an estate
An inheritance tax is charged to the person who inherits, and the rate typically depends on the relationship: a surviving spouse is usually exempt, children pay little or nothing, and distant relatives or unrelated beneficiaries pay the most. There is no federal inheritance tax, and only a small minority of states impose one. Whether it applies at all, and at what rate, varies by state. It is a different thing from estate tax, which is charged to the estate.
How this works in your state
The concept is national, but the forms, procedure names, thresholds, and filing practice vary by state. Open your state glossary and guides to see how inheritance tax is handled where the estate is being settled.
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Information current as of April 4, 2026
Settled Estate is not a law firm, and this content is for informational purposes only and does not constitute legal advice. Probate laws and procedures in your state can change. Consult with a qualified attorney for advice specific to your situation. Full disclaimer.