--159.145.xxx.xx

the exemption is $11million --198.135.xxx.xxx

If you're talking about state inheritance tax, we negotiated (if you can call it that) with the state of PA to pay the tax when the property sells. That said, interest continues to accrue... --23.30.xx.xxx

In Pennsylvania, our inheritance tax is due within 9 months of the date of death ... if paid after the 9 months, penalty and interest are also due. you receive a discount if the taxes are paid within 3 months so many folks send in a check even though they don't know the exact amount of the taxes. California will have their own time frames. --72.70.xxx.xxx

Howeber, tax rules change and every state has their own special rules. Best talk to your accountant. --23.121.xx.xxx

Also, while appraising the estate for tax purposes after death, your heirs need to sell any houses they want to sell immediately, while still held in estate, so they can use sales price for the inheritance value instead of appraisal value. In my situation, my mother's house was overbuilt for the neighborhood and was hard to price. We sold it for far less than I would have originally appraised it, and if I paid tax on appraisal then I would have paid more taxes than I had to. --108.69.xxx.xxx

Explore irrevocable trusts to your sons. --99.59.x.xxx

It can change on a dime so put them in a trust. There was no income tax here in NJ for children. One day a lawyer did a lunchtime seminar on Trusts. I went. I felt compelled to go. I got all the handouts and talked to my parents that night. They had ten properties. They decided to put them in a trust for me. Even the lawyer asked why we were doing this as there was no inheritance tax for children. They did it anyway. Some of the buildings were not put in the trust. Dad passed and mom and I ran the buildings. The year before my mother passed, a Democrat governor signed a bill requiring that children pay inheritance tax. Fortunately half the buildings were in a trust and so were not taxed. President Bush had also lowered the federal inheritance tax so I did not have to pay that. I ended up having to pay $37,000 to the state of New Jersey. that was all my working capital and I ended up cutting lawns, raking leaves and moving snow instead of investing that money. If half of the properties were not in the trust I would have had to pay federal tax and the NJ inheritance tax and probably would have had to sell a building to pay that. The buildings were appraised using comparables of sold properties that were sold as of the day of my mother's death and before. That's the way it works. I had to get a second appraiser because the first one used unsold comparables at the time which was a year after my mother's death and building prices had begun to soar due to the Pelosi Reid first time home buyers program which gave out $200 K mortgages to people with poor credit. That's the program that crashed the economy in 2008. So you never know what some crappy politicians is going to pull on you. Get a trust. --73.248.xxx.xxx

This is why you should contact an "Estate and Probate Attorney". If you set up a Family Trust correctly, then you can leave your estate inherited tax fee to your children. --47.156.xx.xx

Do not make the mistake of giving the rentals to your children during your lifetime. This gives them your basis less any depreciation you have deducted. Its better to have a stepped up (or down) value with no depreciation to recapture. --173.15.xx.xxx

Also, regarding Trusts, some states (like PA) don't recognize a trust for inheritance tax purposes. You need to learn about your state's rules. --23.30.xx.xxx