Is there tax on tax inheritance?

I guess it depends on the situation; An inheritance tax (also known as an estate tax) is a tax levied on a person who inherits money or property, or a tax on the estate (total value of the money and property), of a person who has died; as long as the FMV of the estate or the amount of inheritance exceeds a certain level, you are subject to inheritance tax.

== ans ==

While the entire concept of inheritance/estate tax is complex, with many exemptions and exclusions and other considerations - the above is wrong.

The Federal Laws are changing, but basically, if the estate (as it is defined) is )or soon will be) under 5M there is no tax on it. That is - a tax on the ESTATE of what the deceased has to give.

What one receives from an estate (with certain exemptions, like to a spouse, generally) - an INHERITANCE - is generally taxable as income to the one receiving it. Also if the money is coming from the deceased IRA (or certain other qualified retirement savings plans), there may be options on how to have it paid that either defer or change the amount of tax to be paid.

Finally, the laws in the STATES are generally entirely different. (So an estate may not be taxed by the Feds, but taxed by the State, and an inheritance taxed by the Feds and not the State).