Question

Raymond’s grandfather recently passed away. He left Raymond $1,000,000 in his will. Raymond’s lawyer tells him not to spend all $1,000,000 because he will owe some of it to the government. Why is this MOST likely true?
Group of answer choices

Raymond will have to pay inheritance tax.

Raymond will have to pay real estate property tax.

Raymond will have to pay excise tax.

Raymond will have to pay estate tax.

Answer 1

Raymond will have to pay inheritance tax.

Reason: an inheritance tax is charged to the beneficiary on what they receive. Estate tax is paid by the deceased’s estate before distribution; real estate property tax and excise tax don’t apply to inheriting cash.