INHERITANCE TAXES

When my mother died 11/99, she had approx. $10,000 in checking and savings accounts. Both accounts were active over the 1-year period. The accounts were in the name of my mother AND I. I thought if accounts were more than 1 year old, there were no taxes to be paid. How is this figured??? I have associates whose parents had much much more than $10,000 in accounts, and they have paid no inheritance tax. How does this work??

Federally, there is an estate tax. Presently, an estate tax is due if your estate, including lifetime gifts, exceeds $675,000. Joint accounts are considered 100% owned (for estate/inheritance tax purposes) by the decedent, unless you can prove otherwise.

As to your state's inheritance/death/estate tax, check your state law to find out what the threshold is concerning the tax. Many states, have eliminated the tax or are in the process of phasing the tax out.

Good luck.