What is a death tax?

Death tax is a type of taxation that is due upon the death of a person. In New Mexico, the death tax is known as the Inheritance Tax. This tax is imposed on the transfer of a decedent’s estate to their heirs or other beneficiaries. The amount of the tax is based on the value of the estate, the type of assets involved, and the relationship of the heir or beneficiary to the decedent. For instance, if the decedent owned property valued at $250,000 that was bequeathed to their child, the state of New Mexico would impose an Inheritance Tax. This tax is usually calculated as a percentage of the value of the property and can range from 4% to 8.7%, depending on the relationship of the beneficiary to the decedent. In addition, the Inheritance Tax must be paid before the estate is transferred to the heirs. The executor of the estate must file a return with the New Mexico Taxation and Revenue Department and pay the death tax before the property is distributed. The executor is also responsible for keeping the New Mexico Inheritance Tax Records, which must be kept for up to seven years after the death of the decedent. It is important to remember that the Inheritance Tax is only imposed on certain transfers of property and may not be applicable to all estates. Consulting with an experienced attorney can help to determine whether a death tax is due on an estate.

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What is a death tax?

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