Will my estate be subject to taxation?
The answer to this question is variable depending upon the extent of your resources. First, you should understand the fact inheritances are not looked upon as taxable income.
When it comes to capital gains taxes, inherited appreciated assets get a step up in basis. This means that an inheritor does not have to pay capital gains taxes on assets that appreciated during the life of the decedent.
We have a federal estate tax in the United States that could put a major dent in your legacy, because it carries a 40% top rate. The exclusion is adjusted annually to account for inflation, but it is in excess of $11 million. This is the amount that can be transferred before the tax would become applicable.