Tennessee Laws on the Inheritance of Money
In Tennessee, the inheritance of money is regulated by county probate courts and state law. In most cases, you will have to wait for the conclusion of the probate process before receiving an inheritance. A number of state laws apply that may affect the amount that you inherit, or whether you receive an inheritance at all.
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Probate Process
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Probate is the process by which the court administers the distribution of estate assets. To initiate the probate process, you must deliver a copy of the decedent's death certificate and last will and testament (if any) to the clerk of the probate court in the county where the decedent died. The court will determine the validity of the will, appoint an estate executor and hear any challenges to the authenticity of the will or the validity of its provisions. The executor must pay estate creditors and distribute estate assets as directed in the will or by state law. The entire process usually takes several months.
Spouse's Elective Share
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Tennessee is not a community property state. Rather, a surviving spouse is guaranteed a certain minimum of the decedent's estate, known as the spouse's elective share, regardless of the content of the will. Alternatively, the spouse may accept the amount stated in the will or, if there is no will, the spouse's share under Tennessee's intestacy laws. The spouse's elective share is 10 percent of the net estate is he was married to the decedent less than three years, 20 percent if married at least three but less than six years, 30 percent if married at least six but no more than nine years and 40 percent if married nine years or more.
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Intestacy
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If the decedent does not leave a will or if the will is declared invalid for any reason, property will pass to heirs under Tennessee's intestacy statute. If the decedent left no living children, the spouse's share is 100 percent. If the decedent left living children, the spouse's share is at least one-third but can be more depending on how many living children there are.The intestacy statute also provides for shares for more distant relatives if the decedent leaves neither a spouse nor living children. If the decedent leaves no living relatives, the entire estate will belong to the state of Tennessee.
Estate Taxes
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Tennessee imposes an inheritance tax on heirs receiving property under a will. It is only applicable if the total value of the estate exceeds the estate tax exemption, which in 2011 was $1 million. The amount of this tax varies according to the size of the estate, but does not exceed 9.5 percent of the value of the estate. If the amount of the tax is less than the state death tax credit allowed on IRS Form 706 (the federal estate tax return), an estate tax is levied to make up the difference. This amount is determined by complex IRS rules.
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References
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