Table of Contents
Introduction
Inheriting money or property from a deceased family member can be an emotional and significant event in your life. It is important to understand the tax implications of receiving an inheritance. It is especially crucial to comprehend the taxes on inheritance in Missouri, if you are a resident of this state. In this blog post, we will discuss the tax on inheritance in Missouri, the exceptions to the tax and more.
Tax on Inheritance in Missouri
In Missouri, there is no inheritance tax. This means that the recipient of the inheritance does not have to pay any tax on the amount. However, the executor of the estate, who is usually a family member or close friend, is responsible for paying any taxes due to the state.
If the estate is required to pay taxes to the state, the amount will depend on the value of the estate. In Missouri, the estate tax rate is 6%. This means that the executor of the estate will have to pay 6% of the estate value in taxes to the state.
The executor of the estate is also responsible for filing any necessary tax returns. If the estate is required to pay taxes, the executor must file a Missouri Estate Tax Return with the Missouri Department of Revenue. The return must be filed within nine months of the deceased’s death.
Exceptions to Tax on Inheritance in Missouri
In Missouri, there are some exceptions to the tax on inheritance. For example, if the estate is valued at less than $5 million, the executor does not have to pay any inheritance tax. Additionally, if the estate is passed down to a surviving spouse, the executor does not have to pay any taxes on the inheritance.
In certain cases, the executor of the estate may be able to claim certain deductions on the estate taxes. This includes deductions for real estate taxes, charitable contributions, business losses and funeral expenses. Additionally, the executor can also claim a deduction for any taxes paid to the federal government.
If the estate is valued at more than $5 million, the executor may be able to file for an extension on the filing of the Missouri Estate Tax Return. The extension must be filed within 18 months of the deceased’s death.
Conclusion
Inheriting money or property from a deceased family member can be an emotional and significant event in your life. It is important to understand the tax implications of receiving an inheritance. In Missouri, there is no inheritance tax, meaning that the recipient of the inheritance does not have to pay any taxes on the amount. However, the executor of the estate is responsible for paying any taxes due to the state. There are some exceptions to the tax on inheritance in Missouri, such as if the estate is valued at less than $5 million or if the estate is passed down to a surviving spouse. The executor can also claim certain deductions on the estate taxes, such as deductions for real estate taxes, charitable contributions, business losses and funeral expenses.