Inheritance Tax?

[themechanic]

Uncle Bill passed away recently and left me his beloved 1970 340 Cuda. I am wondering what Uncle Sam expects to be paid for this privilege. Have any of you received a car or truck in this manner? If so, what can I expect?

Thanks FBBO

Edit 10:40 AM: I should have said the Cuda was left, with all Bill's estate, to one of his sisters who is giving me the car.

 

[VANDAN]

I believe it varies from State to State. I've started "dual titleing" my vehicles so this won't be an issue when I move on...

 

[Bb70charger500]

No cost here in FL

 

[themechanic]

I found this on justanswer.com


Tax Professional: Merlo
HelloCustomer

"There is some confusion among most people about "inheritance" tax. In the US we actually have no "inheritance" tax as such. Rather the IRS imposes an estate tax on the entire value of an estate that is left behind by a decedent. Estate taxes that are due, if any, are then deducted from the estate, and the balance is distributed to the heirs. The heirs do not pay any taxes on what they receive from the estate.

If this answer has been helpful, please press the "Accept" button. Positive feedback is also greatly appreciated. Thanks for the question and I hope this helped."

So, it looks like the taxes are paid out via the estate and the receiver of the gift pays nothing.

 

[GTX.JCW]

An even better solution is to put everything in a revocable trust. I have been the recipient of a distribution from a trust and on a lump sum amount or real property there is no tax payment. It is very true that the estate does pay some tax, depending on the value. If it is under $1M, there is no estate tax, including California where I live.

Jeff

 

[mopar_chuck]

Sorry to hear about your uncle. He must have thought a lot of you to give you such a desirable car. They are one of my personal favourites. Hopefully the blood sucking tax man won’t take too much. It’s hard to even imagine profiting from a dead man but they do it every day.

 

[khryslerkid]

In Pa. if the deceased is a resident of Pa. and the recipient is also, there is an inherent tax. If the deceased is out of state, then there is no tax. Does that make any sence?

Maryland has had a inheritance tax then they didn't. Now I think they have one again.

Some will fall under capital gains tax. What a shame to take advantage of someone's death.

When you put the car in your name, they'll probably try and charge you tax on the value. Most DMV's have a minimum.

 

[themechanic]

The estate, including 2 automobiles, a house, and lots of personal property like tools and such, is being handled by a law firm for my aunt. They have set up some sort of trust but I don't know the details. The plan is to settle all debts, sell her house and Bill's house and property excluding the Cuda which will be transferred to me, eventually. Then she and my uncle will move into a patio home since they are up in age and handicapped.

 

[dadsbee]

Aunt can give you a car for $1 in Canada...

 

[mopar_chuck]

Aunt can give you a car for $1 in Canada...

They have changed that here in my province.... that only applies for direct family, like father and son. Aunts and uncles are excluded from that. Run into this a few years back with my uncle.

 

[dadsbee]

They have changed that here in my province.... that only applies for direct family, like father and son. Aunts and uncles are excluded from that. Run into this a few years back with my uncle.

Interesting... we gave my Mothers car to a Nephew for a $1 in 2009.. fully legal and unquestionable but he did have to get it safetied.

 

[dadsbee]

I stand corrected... current regs in Ontario.

You can transfer ownership without paying the retail sales tax when receiving a vehicle from a:

• spouse
• parent or step-parent
• grandparent or step-grandparent
• son or step-son
• daughter or step-daughter
• grandson or step-grandson
• granddaughter or step-granddaughter
• son-in-law
• daughter-in-law
• father-in-law
• mother-in-law
• sibling
• half siblings (siblings with a common parent)
• adopted siblings (siblings with a common parent through adoption)

 

[mopar_chuck]

Interesting... we gave my Mothers car to a Nephew for a $1 in 2009.. fully legal and unquestionable but he did have to get it safetied.

I run into it in 2012 and they told me that law had just recently changed so that sounds about right. Our dmv has gotten a lot more strict in the last 10 years. $$$$$$$

 

[dadsbee]

As per what I posted above.. we can still do the Grandmother to anyone up or down the family, but Aunt to Nephew is gone.

 

[Roger63]

I know a little about this as I live in Oklahoma. Have your aunt write you a bill of sale for say $500. It really doesn't matter what the price is because in Oklahoma if a car is that old you pay a standard small property tax and tag fee. Then your done.

 

[greycharger]

In South Dakota, they use the CPI book and charge 4% of that. I bought a bugeye sprite for $200, went in to change the title and the woman got out her CPI book. I knew what she was doing, so I told her: You won't need that because it's not for sale. So then she says: Well I have to see if you paid enough for it. So I told her: You have the bill of sale and if you think old Archie and I are trying to pull something then you call down to the Sheriff's department and have a Deputy come up and arrest me, otherwise $200 was the purchase price. I'll have to ask my supervisor, she said. She came back and said: Just this once. To which I said: Unless I get a smoking hot deal on another car. Legalized theft.

 

[Dako]

Ask your local DMV/ MVA, or look it up online for your particular state, as this varies state by state

 

[Budnicks]

best thing is to write 'a will' & set up a revocable living trust
put cars, trucks, trailers etc. in the &/or name of the people
you will give it to, makes for far less hassles
especially if your time is close, no probate hassles

unless you're a billionaire it's no big deal
they have to pay a shitload in inheritance taxes
taxes while you work
taxes while you retire on the $$$ you paid taxes on while earning it
& then your heirs pay taxes on it when you die

taxman always wins

 

[zyzzyx]

Sorry to hear about your uncle! The only thing you will be responsible for is the
sales tax on the car when you register it. The car is older than twenty years old,
so you can tell them it is worth $1000.00 and not incur a big bill. They won't
want to see the vehicle either, so I believe you're gonna be good. Good Luck!

 

[Roger63]

You could call your local tag office they can give you accurate information. And if the car is coming in from another state Oklahoma requires a vin verification inspection so they will have to see the car.