Will estate taxes be due?

Estate taxes only apply to estates over a certain value. There are estate taxes imposed by the Internal Revenue Services at the federal level, and in some states, by a state department of taxation. Nevada does not tax estates. Currently, the federal government taxes estates with values over $5.5 million, on the amount over $5.5 million. However, this is a complicated topic, and that figure can be decreased if the deceased made large gifts during life or increased if the deceased had a spouse who died first. 

It is uncommon that an estate of large value will pay inheritance or estate taxes, because the deceased often makes arrangements in advance to minimize the tax. 

It is important to understand the difference between estate taxes and income taxes. If the deceased worked during his last year of life, taxes may be due on that income. In any case, a tax return will likely be due by April 15th of the following year, just like during life.

If the deceased did not work, but had increases on the value of stocks or investments between the date of death and the date the money is distributed to heirs, there could be tax due on the increase in value. Usually that is paid at the estate level before money is distributed, but be sure to discuss with a qualified accountant before spending the funds without setting aside tax money.