How much can you inherit from a trust without paying taxes?
Beneficiaries in the United States can inherit any amount of money or property from their parents completely free of federal inheritance taxes, as there is no federal inheritance tax law. Furthermore, under current federal estate tax laws, individuals can pass millions of dollars to their heirs tax-free up to the lifetime estate and gift tax exemption threshold. When parents pass away, most inherited assets—such as real estate, stocks, and mutual funds—receive a step-up in basis, meaning capital gains taxes accrued during the parents' lifetimes are wiped clean, allowing children to sell inherited property immediately with little to no capital gains tax liability.
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