Wills and inheritance tax question?

Question

I live in MD, my father left me money when he passed away. If he leaves me 25k, do i have to claim it on my taxes next year, or will it be taxed before i receive the money?

If it does get taxed, how much will i have to set aside?

Answer 1

In an inheritance the estate pays tax, not the beneficiary (you).

Though in 2008 the first two million of an estate is exempt from being taxed federally, so you should see all that money.

I don't know if MD has an estate tax, however.

Answer 2

No federal tax to you.  Not sure about MD.