Pay it themselves? Unlikely.
Originally Posted by deltadart1
But that money will be part of Mom's gross estate. And, if the overall estate is large enough, the estate could be subject to federal estate tax. (And Iowa has its own estate tax which is designed to pick up the credit for state estate taxes paid. Since that federal credit is repealed - at least through 2010 - effectively, there is no estate tax in Iowa right now.) In 2009, only estates greater than $3.5M are subject to federal estate tax. How that may change in the next few years is anybody's guess.
Iowa also has an inheritance tax. Whether inheritance tax is due depends upon the relationship between the deceased and the beneficiaries. Assets passing to beneficiaries who are lineal ascendants or descendants of the deceased are exempt form the inheritance tax.
(And I bet you thought there was a simple answer.)
Last edited by anteater; 07-12-2009 at 10:41 PM.
"Look, sir, we can't just do nothing."
"Why not? It's usually best."