Q: Will my 2 children have to pay any inheritance taxes when they receive their inheritance from me one day?

by | Nov 17, 2021 | Estate Planning, Q&A |

A: Whether or not your children will have to pay inheritance taxes will depend upon which state they reside in at the time of your demise! For example, if both your children live in California, they will NOT have to pay any inheritance taxes.  However, if one of your children is living in Iowa, for example, then the state of Iowa will charge an inheritance of up to 15% of the amount that child inherits! And remember, inheritance tax is distinct from the concept of Estate Tax – we’ll discuss Estate Taxes in next week’s installment of WW!