LITTLE ROCK, Ark. — The last thing anyone wants to worry about when a parent passes away is money, but unfortunately, it’s often necessary.
If you inherit money or belongings, you will be forced to pay an inheritance tax in some states— however, that is not the case here in Arkansas.
While Arkansas has no inheritance tax, inheritance laws in other states may apply to you if you inherit money or assets from someone who lives in a state that does have an inheritance tax.
Additionally, Arkansas also has no gift tax. The federal gift tax exclusion is $17,000 in 2023. If you give more than that amount to any one person you must report it to the IRS.
If you receive an inheritance from someone living out of state, make sure to check the local laws in your grantor’s state to see if you owe inheritance tax.
Here is a list of states with an inheritance tax.