If you’re like most people, the thought of dealing with taxes is about as appealing as getting a root canal. But if you’ve inherited property, it’s important to be prepared for the potential tax implications. While there are some strategies you can use to minimize your tax liability, it’s important to work with a qualified tax accountant to ensure you don’t end up paying more than you have to.

In this blog post, we will explore how to deal with inherited property taxes. From understanding the basics of taxation to learning about estate planning, read on for everything you need to know about this complex topic.

Inherited property taxes?

When a property owner dies, the property is generally transferred to the heir through probate. The estate may be responsible for any unpaid property taxes at the time of the owner’s death. In some cases, the state or local government may require the heir to pay these taxes before they can assume ownership of the property.

In some cases, an heir may be able to receive a discount on inherited property taxes if they live in the same house as the deceased owner did. This is typically only available for a limited time after the death of the owner.

What happens if you don’t pay your inherited property taxes?

If you have inherited property, you are responsible for paying the property taxes on that property. If you do not pay the taxes, the government may place a lien on the property, which means they can take ownership of it if you don’t pay up. The government may also auction off the property to recoup the money you owe in taxes.

How can you avoid paying inherited property taxes?

Check out these crazy but effective ways to avoid inherited property taxes!

Gift someone:

According to HMRC regulations, you are permitted to make gifts of your assets without incurring IHT (Inheritance Tax) as long as you live for 7 years after the gifts are made.

Give to charity:

There are many advantages to donating to a worthwhile cause. The remaining portion of your estate will only be subject to 36% tax rather than 40% if you leave 10% or more to charity.

life insurance:

With some planning, life insurance can be used to offset the majority of the inheritance tax that will be owed upon the death of a loved one.

Pass on the property:

The laws governing trusts can be complicated, but if you have assets in a trust for a child or grandchild, they are not included in your estate’s value and are not subject to IHT. As a result, they will have more money in their bank accounts when they are ready to take ownership of those assets.

Last Verdict

Inherited property taxes can be a burden, but there are ways to deal with them. You can contact AGS Accountancy to get a property accountant who estimates the taxes you’ll owe and then set up a payment plan. You may also be able to appeal your assessment if you think it’s too high. Whatever you do, don’t ignore the problem, as that will only make it worse. Deal with it head-on and you’ll be able to get through it.