What is the Inheritance Tax?

In South Carolina, Inheritance Tax is a tax on assets left by a person who has passed away. It is also referred to as the estate tax or the death tax. The inheritance tax is paid by the heirs of the deceased. The inheritance tax applies to the value of the property that is inherited, which could include money, stocks, bonds, and real estate. The state of South Carolina has a unified tax return, which means that the heirs are taxed on the combined value of the assets that they inherit. The amount of the Inheritance Tax depends on the relationship of the heir to the deceased. For example, if the heir is a close relative, such as a parent, spouse, or child, the Inheritance Tax rate is 0%. However, if the heir is a distant relative or not related to the deceased, the Inheritance Tax rate is 16%. In South Carolina, the Inheritance Tax does not apply to the transfer of real estate or money between spouses. Additionally, the Inheritance Tax is capped at $1 million. This means that no Inheritance Tax will be due on any amount beyond $1 million. Inheritance taxes can be a complicated matter and it is important to understand the laws that apply to you in South Carolina. If you are the heir to an estate, it is wise to consult with a tax professional to ensure that you correctly understand the laws and file your return properly.

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What is the Inheritance Tax?

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