What is the inheritance tax?
A. It is a levy imposed on the transfer of a deceased person’s property. The most common method of transfer is by a will. When someone dies without a will, i.e., intestate, state law determines how property is distributed. Q. Am I liable for inheritance tax if I transfer my property prior to death? A. Possibly. Transfers made within three years prior to death are presumed to be in contemplation of death, and taxable. The transfer will not be taxed if it can be shown that the transfer was not made in contemplation of death. Also taxable are transfers prior to death with some form of beneficial interest retained by the transferor. An example would be the transfer of the title to one’s home to a child, with the transferor continuing to live in the home. Q. Is there a tax on jointly owned properties? A. Yes. The tax is based on the number of co-owners. If there are two owners, then 50 percent of the property is taxable. One third of the property is taxable if there are three owners. The en
