In most instances, the answer is no. A typical inheritance is received tax-free to the beneficiary and in fact in many instances, if property passes and you would see their real estate or other types of assets which appreciated over time, you as the beneficiary may receive what we call a stepped-up basis. What that means is the deceased may have bought the property for say a $100,000, held it for 10 years and on the date of death it was worth $200,000. When you inherit that property, your basis is going to be stepped-up or increased to the $200,000 and not the original value of the property. So that when you, at some point, go to sell or transfer that property, your basis or your acquisition cost is deemed to be $200,000. It’s a little complex but we’re here to get you through that and explain the process to you. However, just know that when dealing with commercial transactions or inheritances, there are often many considerations and it’s best to consult with us before taking steps.
This informational blog post was brought to you by Marc N. Needelman, an experienced Hartford, Connecticut estate planning attorney. If you have any questions, contact the law office to set up a free initial consultation.