Everyone who inherits any property or estate of value wonders about the tax implications. There are three different types of taxes with relevance to inheritances: Inheritance, Estate, and Income taxes.

Inheritance taxes: As of 2015, 6 U.S. states impose taxes on inheritances. They are New Jersey, Pennsylvania, Maryland, Kentucky, Iowa and Nebraska. In each case, widows or widowers inheriting property are not subject to inheritance tax. In addition children and grandchildren of the deceased are exempted from inheritance tax in all ...

Living trusts, sometimes called revocable living trusts, are legal contracts established by a person, referred to as the trustmaker. The purpose of the trust is to own and control the assets of the trustmaker in such a way that the trustmaker’s liability for income, inheritance and other taxes is lessened. The value held by the revocable living trust can be invested, or used to purchase material items, at the direction of the trustee. Usually, the trustmaker is both the beneficiary ...