You're just getting over grieving for the loss of a family member and you get a letter from the Department of Revenue regarding inheritance tax. Do you have to pay it? Are there any exemptions? How much should you expect to have to pay? See whether you know by taking this quiz.
What's the difference between death tax and inheritance tax?
Death tax is a tax for a death. Inheritance tax is a tax for inheriting.
Death tax is a higher tax than inheritance tax.
Proponents of the inheritance tax point out that it will mainly affect the:
In the United States, does the federal government or the state government levy the inheritance tax?
the federal government
the state government
both of them
Traditionally, which body levied an estate tax?
the state government
the U.S. federal government
When a person dies and there is an inheritance, who pays the tax on it?
the newly deceased
Mr. Smith leaves half of his estate to his children and half to his brother. Who pays a higher inheritance tax -- the kids or the brother?
both pay the same
Who pays the estate tax?
the estate's executor or administrator
Following a death, what is the chronological order of the paying of taxes?
The inheritance tax is paid first, then the estate tax.
The estate tax is paid first, then the inheritance tax.
The death tax is paid first, then the estate tax, followed by the inheritance tax.
Are there any deductions or exemptions on an inheritance tax?
depends on the date of death
Once heir A claims an exemption on the inheritance tax, can heir B do so?
No, heir B now loses out.
Yes, each heir can claim exemptions.
Only if there are no contestants to the will.
How is the spouse protected after the death of a loved one?
The tax department sends a very kind condolence letter to the spouse with a tax refund.
He or she is taxed at a very low rate.
He or she is exempt from paying an inheritance tax.
You have just inherited from a decedent who, the state determines, is your close family member. What exemption can you expect on the inheritance tax?
a "family exemption"
a "close exemption"
a "close family exemption"
In states like Tennessee, what is the minimum inheritance requiring a tax?
half a million dollars
one million dollars
five million dollars
How much tax must be paid on money bequeathed to charity?
In some states, nothing.
In most states, 2 percent.
In every U.S. state, 5 percent.
If the decedent had life insurance, is that money taxed?
In some states, no.
In most states, no.
In most states, yes.
How important is the tax bracket for your inheritance?
Very important. How much you pay depends on this.
Not important at all. All inheritances are taxed equally.
It depends on the wrangling your lawyer can perform for you.
Inheritance tax for sibling heirs is about how many times that of lineal heirs?
Some U.S. states divide the classification of heirs into:
beneficiaries A to C
heirs 1 to 3
classes A to C
After the calculation of the inheritance tax owed, you get the figure $11,749.95. How much will the Department of Revenue levy?
Between the years 2007 and 2009, how much was the federal estate tax rate?