Answer:

This is one of the most often asked questions.

In most cases, estate taxes are no longer an issue in estate planning. The Ohio legislature repealed Ohio’s Estate Tax law several years ago. As to federal estate taxes, for all practical purposes an estate must exceed $20 million dollars before estate taxes become a factor in an estate plan. Likewise, those who inherit from an estate plan do not pay an “inheritance tax” and for the most part will not pay “income” tax on the inheritance. An inheritance is not considered “income” for tax purposes unless it is income that was generated while the estate was open, such as a dividend on stocks, or was an asset on which the decedent had never paid income tax, such as an IRA.