He says Florida does not have an Inheritance Tax, but can he bring it back to his life in Washington without having to pay Washington State Inheritance Tax?
There was no WA RE involved, but my friend (call him Nick) is selling his dads FL home as part of his inheritance. Nick's understanding from the horrible Executor Nick's Father named, is that my friend will not receive any more than $250K, probably a lot less with this Exec. at the helm and nobody will give Nick an accounting, a time line, nothing. So, when Nick comes back to live in WA with his FL inheritance, the Feds could ask for taxes on already taxed money? The Exec. said Nick's Dads taxes have already been paid this year, Nick would have to pay again, out of his inheritance even though WA doesn't have an inheritance tax? Right? Thank you.
Washington inheritance tax only applies if the deceased person lived in Washington at the time of death, or owned substantial property in Washington at the time of death. It also only applies currently to the part of the estate that is over $2 million.
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Elder Law Attorney
I agree with Justin Elder. The only thing that I would add is that the decedent often owns IRAs or similar assets. The receipt of those assets by heirs often comes with an income tax obligation even when there is no inheritance tax owed. That would be a federal income tax.
Estate Planning Attorney
The answer depends on whether the father owned property in Washington or was a resident of Washington when he died. Washington does not have an inheritance tax (a tax on the person who receives an inheritance) or a gift tax. It does have an estate tax (a tax on the property of the person who died), but as my esteemed colleagues pointed out, that does not apply unless the person who died resided in Washington or owned property in Washington, and then only if the property was over $2 million.
This answer provides general legal information and should not be construed as legal advice to be applied to any specific factual situation. It is not intended to create and does not create an attorney-client relationship. The attorney writing this post is licensed in Texas and Washington only and the laws of your jurisdiction may differ.
Car / Auto Accident Lawyer
I'd be more worried about income tax surprises unless the father owned valuable Washington situs property.
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