Legal Question in Tax Law in Illinois

Re: inheritance

No, the estate may have to pay taxes but the recipient does not.

David Staub, attorney

Re: inheritance

There are two taxes to consider: (1) estate taxes- the executor of the estate pays the tax, the recipient does not pay the tax unless the estate failed to pay under transferee liability rules

(2) income tax - generally the recipient does not pay income tax on an inheritance, but if the distribution is during a year when the estate had taxable income, that taxable income flows through to the recipient to the extent assets are received.