Inheritance Tax
An “inheritance tax” is tax paid by an heir on stuff they inherit after someone else dies. It’s also called a “death tax,” which we’ll go ahead and file in the Morbid Yet Accurate category, and how much we could end up paying depends on where we live, where the dead person lived if we inherited property, and what our relationship to that person was.
The federal government doesn’t do inheritance taxes. Neither do most states. In fact, the only six that do are Iowa, Kentucky, Maryland, Nebraska, New Jersey, and Pennsylvania. This doesn’t mean we won’t pay any sort of taxes on what we inherit if we live elsewhere—an inheritance tax is a completely separate animal from an estate tax. But what it does mean is that, if we live in one of those six states, we’re probably going to end up paying additional taxes on what we inherit, unless we're a surviving spouse or, in some cases, a surviving sibling, child, or grandchild.
Related or Semi-related Video
Finance: What is a Closed-End Fund?1 Views
Finance a la shmoop what is a closed-end fund? well it's a type of mutual fund [Man approaches mutual fund desk]
only like a bank at any convenient time it's closed
like its assets are enclosed in its price closed means that the fund itself
doesn't actively trade assets back and forth inside of it on a daily basis like
the most famous closed-end mutual fund in the world is Berkshire Hathaway [Man pushing pram of a baby with Berkshire Hathaway briefcase for a head]
Warren Buffett's you know other child the successful one it owns 40 or 50 key
assets from Geico to train companies to metal machinery firms in Israel to
boatloads of shares of stocks like coca-cola and Gillette and Wells Fargo
all of those assets are wrapped up in a tidy BRK bow and the stock market values [Stock market values appear]
ticker BRK daily by trading it back and forth among investors so yes the assets
inside of the fund do change but in an analogous mutual fund that is open the
value placed on the shares is at what is called net asset value, that value is
calculated by just adding up the 843 stocks at the mutual fund owns or however
many the number is and then just calculating a value based on the number [Calculation appears]
of share units comprising that open end mutual fund the closed-end fund has no
changes that way it's just investors valuing the whole bucket of investments
in one closed number now if you'll excuse us we have to get back to [Baby crying in a crib with Berkshire Hathaway briefcase for head]
babysitting for Warren Buffett isn't she just an angel
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