In the United States if you receive property from a relative in their will and that property is worth more than $3. 5 million as of his year you will have to pay estate tax. You may be asking what is the estate tax, and in short it is a tax that you will have to pay on property you are set to receive. Both the property tax and the estate tax are considered the least popular forms of taxation in our tax code.

Sometimes people will unfortunately have to sell so much of the estate or sell it in full to be able to pay the estate tax, which will mean that a home that has been in the family for many years can no longer be and the remaining money will have to go on something else.

There is an amount each year to which any property inheritance is exempt from tax payment which in 2006 was $2 million, however if you have a wife or husband then the amount you are exempt will double so this will mean that a single person would only pay tax on amounts over $2 million, but a married couple would only have to pay tax on any estate or remaining equity after $4 million.

The estate tax is due to be paid 9 months after the person dies and is payable by the recipient. You will have the option to extend the period of time it is paid over if the estate has a business attached to it, which will mean you will be able to keep the business going as well as being able to meet the tax payments, the period can be extended up to 15 years.

If you own land such as a farm, you can get a discount further, which will mean that a quarter or half of the amount of the farm value is not taxed as long as it is being or has been looked after by a family member and you will also have to keep the farm within your family for a minimum of 10 years before selling on to receive this exemption.

You will find that roughly only 1% of the population will recieve a gift such as this from a loved one who has passed away, and without property of such equity you will not have to worry about estate tax.