do beneficiaries have to pay taxes on inheritance 
whether beneficiaries have to pay taxes on inheritance depends on their familial relationship to the deceased and on the state where the decedent lived or owned property only estates or property located in one of six states that impose inheritance taxes may be subject to them surviving spouses are always exempt from inheritance taxes other immediate relatives like the deceased s parents children and siblings are exempt to varying degrees depending on the state inheritance taxes mainly affect more distant relatives and unrelated heirs the bottom lineinheritance taxes only affect bequests made by residents in six states and they mainly apply to distant relatives or those completely unrelated to the deceased spouses are always exempt from paying inheritance tax and immediate family members like children parents are often exempt as well still inheritance taxes can kick in at relatively small inheritance amounts sometimes as little as 500 those considering bequests that could be subject to an inheritance tax might consider estate planning strategies including gifts insurance policies and irrevocable trusts 