Can a beneficiary's state tax an inheritance from another state?

Question

The situation is that the deceased person, the beneficiaries, and the property are connected to more than one state. The situation is that the federal estate may be below the federal threshold, but we are learning that state estate or inheritance taxes can use different rules. Right now, the basic federal rule seems understandable, but timing or state law could change the result.

Soradin · Accepted Answer

State connections and the type of property matter, so both states may need to be reviewed. Federal and state systems are separate, so the executor or beneficiary should check the current rules that apply in NE and any other state connected to the estate. For the filing analysis, state estate and inheritance taxes are separate from federal estate tax.

Can a beneficiary's state tax an inheritance from another state?

Soradin

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