Out of State Inheritance Tax

[jrw2022]

Good afternoon,

Not sure, but I may have a sticky situation.  I had an aunt who lived in Nebraska (inheritance tax)  who had me as the beneficiary payable on death of a money market cd when she passed away.  I live in Pennsylvania (inheritance tax).  I believe I owe an inheritance tax to Nebraska, but not sure what I need to do in PA.  I have selected PA as my one state download on Turbo Tax Deluxe.  Hoping someone can help me with this, or point me in the right direction.  In any event, any help would be greatly appreciated.  Thank you.

Regards,

John Waker

[DavidD66 · Accepted solution]

Since your Aunt was a resident of Nebraska, the money you inherited may be subject to Nebraska Inheritance Tax, but it is not subject to Pennsylvania Inheritance Tax. 

In Nebraska, it is the responsibility of the executor of the estate (or if there is no will, the administrator named by the court), to file a Nebraska inheritance tax return if one is required. The executor generally collects the tax from the inheritors who owe it. Even if several inheritors owe tax, only one return is filed.  Since you inherited the CD from your Aunt, there is a $15,000 exemption.  For amounts above that, the tax rate is 13%.  If you inherited less than $15,000, there is no tax.  If you inherited  more than $15,000, you should contact the executor of the estate.

[jrw2022]

Thanks David.  Sorry I didn't respond sooner, but I don't check my email notifications every day.  I was hoping I wouldn't  get hit twice.  As it stands, I am also the executor, and my amount of what I am liable for is pretty much been determined.  What is up in the air is the determination of what the other beneficiaries received, annuity or life insurance distribution.  As a follow up, should I pay my portion and settle that, or should I wait on the determination of the other distributions and then file?  Still a little sticky, but not quite as much.  Thanks.

Regards,

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