When money or property changes hands after a loved one passes, the tax rules surrounding inheritance taxes and estate taxes can feel daunting.
Additionally, many people may have heard claims about owing IRS tax bills after an inheritance or intimidating phrases like "death taxes," which can blur the lines between myth and reality. In fact, a new survey conducted by Morning Consult for Kiplinger's Trillion Dollar Talk campaign found that a third of both older adults and adult children are unsure whether heirs will owe taxes on an inheritance, demonstrating the confusion around this topic.
As with all tax rules, knowing the facts is important. So why not test your knowledge with this short quiz to see if you can separate inheritance tax facts from fiction.
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More Trillion Dollar Talk
- We Asked 5,000 Americans About Inheritance and the Great Wealth Transfer. Here's What We Learned
- Estate Tax v. Inheritance Tax: Who Actually Pays?
- States That Won't Tax Your Death
- What Happens With Taxes When You Inherit a House?