Does a Spouse Have to Pay Inheritance Taxes in Louisiana?
Under Louisiana probate law, the surviving spouse does not inherit any property unless the deceased specifically leaves money or a property to the spouse in a will. Otherwise, the children and nieces and nephews of the deceased receive his community and separate property. Louisiana laws state that when a spouse inherits any assets under a will, she does not pay inheritance taxes on it.
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Inheritance And Estate Transfer Tax
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Louisiana imposes an inheritance and an estate transfer tax on inherited assets. According to the state law, the heirs must pay inheritance tax for the privilege of receiving property from the deceased. Large estates that require a federal estate tax return may need to pay estate transfer tax. The IRS allows a credit for paid state death taxes up to a certain amount. In most cases, the estate transfer tax amount equals the federal tax credit, and does not impose any additional burden on the taxpayer.
Intestate Successions
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When a person dies, the first step is to determine if there is a will. According to Louisiana probate law, a surviving spouse does not inherit any community property, unless the deceased left instructions in a will. Without a will, the probate court distributes the property among heirs and forced heirs --- children under 24 or disabled children of any age. The surviving spouse has a legal usufruct --- a limited lifetime right to use a property. However, if she does not inherit the property, she does not pay taxes.
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Testate Successions
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Testate successions are succession according to the living will of the deceased. According to Louisiana probate law, all assets willed to a surviving spouse are tax-free. However, other heirs must pay inheritance taxes on any of the gross value of the property received from the deceased. They can subtract the value of the usufruct to the surviving spouse, which can be determined by a table in the tax laws according to the age of the surviving spouse. Direct descendants and ascendants receive a $25,000 exemption; they pay 2 percent on the next $20,000 and 3 percent on all amounts above $45,000.
United States Estate Tax
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United States estate tax is paid by the estate of the deceased, not by individual heirs. To calculate the estate tax amount, the estate administrator must first determine if the deceased made any gifts or donations to any one person of more than the exempt amount in any one year. If he did, that amount must be added to the estate. Tax rate is based on the estate amount and may be as high as 55 percent. Any money inherited by a surviving spouse is tax-free.
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