In this video, our Polk County estate tax appeal attorneys explain how an estate tax is levied against the entirety of an estate, including any property, monetary assets, business assets, etc, owned by the decedent. Iowa is one of thirty-six states that do not collect an estate tax. However, if your estate is valued at 11.58 million and above it will be subject to the federal estate tax, which comes with its own set of rules and exemptions. While it’s best to consult a qualified probate attorney for nearly all estates when estate planning, estates with significant value, containing multiple properties and assets, demand the services of a law firm.
An inheritance tax is only imposed against the beneficiaries that receive property or money from the decedent. Anything that is payable to the estate upon death is not included in the calculation of inheritance tax in Iowa and anything payable to a beneficiary, such as a life insurance policy, is subject to the inheritance tax, depending on the relationship between the decedent and the beneficiary.