When someone passes away, there are many unfinished pieces of business to conduct. One of those is managing inheritance and honoring your loved one’s wishes. At Mestayer Law Firm, we seek to provide the best legal counsel to guide you through this process.
Here are five things to help you understand Mississippi’s Inheritance Tax:
What is an Inheritance Tax?
An inheritance tax, sometimes interchangeably confused with an estate task, is a tax on the beneficiaries or receivers of an estate, for example, parents cash and assets.
Why are these taxes confused?
The taxes are similar, in fact, both taxes are called “Death Tax.”
An easy way to remember these taxes:
Inheritance Tax – AFTER GIVING
Estate Tax- BEFORE GIVING
Does Mississippi collect an Inheritance Tax?
Mississippi does not currently collect a state inheritance tax.
Inheritance tax does not depend on the amount received, but on the person who inherits the property. As mentioned, there is no inheritance tax in Mississippi.
What about Estate Tax?
Estate tax is a tax on all of the assets of the deceased prior to the distribution of beneficiaries. For example, the net value of a home, the value of cash (bank accounts), heirlooms and more – minus the debts owed by the deceased person on the day of their passing.
Estate tax will be taxed on the federal level if over $5,430,000 of assets total calculation are reached.
What should you do while going through the deceased wishes, will, and evaluation?
Contact your lawyer or a member of our qualified team to walk you through the process of estate evaluation. If the deceased wrote their will with a qualified legal member, most of the “Death Tax” procedures should be clear and easy to follow their wishes.
Would you like to know more about what you can do to secure your family and household and protect their financial future? The Mestayer Law Firm provide fast, effective, professional and cost-effective expertise in the following legal fields: estate planning: including Trusts, Wills, Powers of Attorney and Health Care Directives; Social Security Disability cases, tax law Family Law, Probate of Wills, Administration of Estates, Will contests and abuses of Powers of Attorney; and personal injury cases. For more information, visit www.pascagoulalaw.com or call us at 228-762-1193.
No representation is made that the quality of the legal services to be performed is greater than the quality of legal services performed by other lawyers. This article does not create an attorney-client relationship. I am licensed to practice law in Mississippi and have based the information presented on US laws. This article is legal information and is for entertainment and informational purposes only and should not be seen as legal advice. You should consult with an attorney before you rely on this information. Any information provided in this blog is accurate and true to the best of my knowledge, but that there may be omissions, errors, or mistakes.