What is estate tax?

Estate tax is a tax that is applied to the transfer of property after someone has died. In South Carolina, the estate tax applies to the total value of a deceased person’s estate before it is distributed to heirs. This includes real estate, stocks, bonds, business interests, and other items of value. The amount of the tax is determined by an assessment of the value of the estate. This assessment considers what the deceased person owned at the time of death, any debts they owed, any tax credits that may have applied, and any tax gifts they made during their life. In South Carolina, estate taxes are based on the taxable value of the estate, which is the total estate minus any items that are exempt from taxation, such as insurance proceeds and certain charitable gifts. Estate tax rates range from 0% to 16%, depending on the amount of the taxable estate and other factors. In addition to the estate tax, South Carolina also has an inheritance tax. Inheritance tax is a tax that applies only to the inheritors of the estate. The rate of the inheritance tax is determined by a graduated rate schedule, which ranges from 0% to 16%. Estate and inheritance taxes can be complicated to understand. Therefore, it is important to consult with a qualified attorney or a tax professional to ensure that all applicable taxes are properly calculated before the estate is closed.

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