By: James Filippi
Will my beneficiaries’ inheritance be taxed?
The receipt of an inheritance by a beneficiary is not generally taxed. If the estate exceeds the estate tax exemption, the estate would have already been taxed prior to the distribution to the beneficiary. However, suppose the beneficiary begins to make income off the inheritance, such as an investment or selling a home or property. In that case, they may be responsible for the income tax on those amounts. It is important to confer with a CPA or other tax professional to determine you tax liability.
