The inheritance tax is a tax on the assets owned or controlled by a decedent at the time of his or her death and applies to assets individually owned, jointly owned and with beneficiaries designated. The tax does not apply to life insurance on the decedent’s life. It also applies to assets the decedent gifted within one year of the date of death. The tax rates are dependent on the relationship of the decedent to his or her beneficiaries. The inheritance tax return is due within 9 months after the date of death. A discount can be achieved for the portion of the tax paid within 3 months after date of death. A six month extension for the filing of the tax return is available during which interest will accrue against any unpaid portion of the tax ultimately due.
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