What Taxes Apply to My Inheritance in Virginia, and When Will I Receive It?
Virginia imposes no inheritance or estate taxNo operative state estate or inheritance tax. Virginia's pick-up estate tax (Va. Code § 58.1-902) remains on the books but imposes "a tax in the amount of the federal credit," and the federal IRC § 2011 state death tax credit has been zero since 2005; the 1978 floor in the § 58.1-901 definition was deleted by 2006 Acts of Assembly Sp. Sess. I, cc. 4 and 5, effective for estates of persons who die on or after July 1, 2007. The separate inheritance tax was repealed effective January 1, 1980, except for remainder interests on which the tax was postponed under former Va. Code § 58-173 (VA Tax PD 15-93).Verified Sep 15, 2026View source; probate assets arrive when the estate closes, 6 months to 9 months for a simple estate.
No. Virginia imposes no state inheritance tax, so a beneficiary owes no state tax on what they receive. An inherited retirement account (a 401(k) or a traditional IRA) is still taxed as income when it is withdrawn, and the federal estate tax reaches an estate above the federal exemption.
No. The IRS does not treat inherited money, real estate or personal items as income, so a beneficiary in Virginia does not report them on a federal return when received. Two exceptions: an inherited retirement account (a 401(k) or a traditional IRA) is taxed as ordinary income as it is withdrawn, and earnings after the date of death are taxable. Inherited property takes a stepped-up basis, its value on the date of death, for any later capital gain.
It depends on how the asset passes. Life insurance and a retirement account with a named beneficiary pay in a few weeks once the claim is filed. Trust distributions in Virginia follow the trustee's administration rather than a court timeline. A probate estate in Virginia takes 9 months to 12 months on average, and longer with a dispute or unusual assets.
Virginia gives creditors 6 monthsVa. Code §§ 64.2-554, 64.2-556(A) (six months from qualification before distribution may be compelled or ordered over creditors), 64.2-508.1(C)(4) (elective published notice: claims due at least six months from first publication); § 64.2-529 (separate 12-month personal-liability shield for the personal representative); § 64.2-550 (debts-and-demands hearing before the commissioner of accounts)Verified Sep 9, 2026View source to file a claim against the estate. The executor does not make final distributions until the period has run, which is what keeps a beneficiary from inheriting an unpaid debt along with the asset.
In Virginia, estates with personal property of $75,000Va. Code § 64.2-600Verified Sep 9, 2026View source or less skip probate with the Small Estate AffidavitVa. Code § 64.2-600Verified Sep 9, 2026View source, 60 daysVa. Code § 64.2-600Verified Sep 9, 2026View source after death. The Small Estate Affidavit is presented directly to the bank, employer, or other holder of the property — it is not filed with a court. The waiting period is 60 days after death. For a beneficiary that means the asset arrives in weeks rather than the months a probate estate takes.
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Inheritance
Inheriting assets brings responsibility. How to manage, protect, and plan for inherited wealth — including tax implications and trust options.
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Death of a Parent
A step-by-step guide to what happens after a parent dies: the documents to find, the certificates to order, and whether probate is even required.
Learn moreForms for Planning and Settling an Estate in Virginia
Free Virginia forms for planning an estate or settling one: a will, trust, powers of attorney, TOD deed, and the probate forms an executor files.
Digital Assets Recovery Letter
Prepare a letter requesting a deceased person's online accounts, points, and balances from the program that holds them.
Petition for Probate and Letters
In Virginia, the petition asks the Circuit Court to appoint the personal representative, whose authority is proved by Certificate of Qualification; every appointment goes through the court.
Notice to Creditors
In Virginia, creditors have 6 monthsVa. Code §§ 64.2-554, 64.2-556(A) (six months from qualification before distribution may be compelled or ordered over creditors), 64.2-508.1(C)(4) (elective published notice: claims due at least six months from first publication); § 64.2-529 (separate 12-month personal-liability shield for the personal representative); § 64.2-550 (debts-and-demands hearing before the commissioner of accounts)Verified Sep 9, 2026View source from first publication to present claims.
Renunciation of Executor
In Virginia, a person named as executor may refuse the appointmentForm CC-1608, Waiver of Qualification (MASTER 11/16); Va. Code § 64.2-500(A)Verified Sep 23, 2026View source before anyone is appointed.
Small Estate Affidavit
In Virginia, the Small Estate AffidavitVa. Code § 64.2-600Verified Sep 9, 2026View source covers estates with personal property of $75,000Va. Code § 64.2-600Verified Sep 9, 2026View source or less, 60 daysVa. Code § 64.2-600Verified Sep 9, 2026View source after death, presented directly to the bank or other holder, not filed with a court.
Estate Inventory
In Virginia, the personal representative files the estate inventory within 120 daysVa. Code § 64.2-1300Verified Sep 15, 2026View source of appointment.
Estate Closing
In Virginia, the personal representative is discharged automatically once the statutory period runsVa. Code §§ 64.2-1212, 64.2-1213Verified Sep 15, 2026View source, and a final accounting is required unless it is waived.
Tools for Planning and Settling an Estate in Virginia
Free calculators and checklists for planning or settling an estate in Virginia: will and trust costs, probate, executor pay, and inheritance taxes.
How Much Are Estate & Inheritance Taxes?
Virginia levies no estate or inheritance taxNo operative state estate or inheritance tax. Virginia's pick-up estate tax (Va. Code § 58.1-902) remains on the books but imposes "a tax in the amount of the federal credit," and the federal IRC § 2011 state death tax credit has been zero since 2005; the 1978 floor in the § 58.1-901 definition was deleted by 2006 Acts of Assembly Sp. Sess. I, cc. 4 and 5, effective for estates of persons who die on or after July 1, 2007. The separate inheritance tax was repealed effective January 1, 1980, except for remainder interests on which the tax was postponed under former Va. Code § 58-173 (VA Tax PD 15-93).Verified Sep 15, 2026View source; only the federal estate tax applies above $15,000,00026 USC 2001(c), 2010; P.L. 119-21 §70106Verified Sep 15, 2026View source.
How Does Step-Up in Basis Work?
Inherited assets in Virginia take a basis reset to fair market value on the date of death26 USC § 1014Verified Sep 15, 2026View source, and the gain on a later sale faces ordinary income tax at the state's regular ratesVa. Code § 58.1-320 (imposition of tax on individuals; graduated rate schedule)Verified Sep 15, 2026View source.
What Are the Estate Laws in My State?
Probate on a $500,000 estate in Virginia costs an estimated $29,411Va. Code §§ 64.2-105(B)(12) (fiduciary employs and compensates counsel), 64.2-1208(A) (commissioner of accounts allows reasonable expenses; no statutory percentage)Verified Sep 9, 2026View source and takes 6 months to 9 months for a simple estate, with attorney fees of typically 2.5%Va. Code §§ 64.2-105(B)(12) (fiduciary employs and compensates counsel), 64.2-1208(A) (commissioner of accounts allows reasonable expenses; no statutory percentage)Verified Sep 9, 2026View source to 3.9%Va. Code §§ 64.2-105(B)(12) (fiduciary employs and compensates counsel), 64.2-1208(A) (commissioner of accounts allows reasonable expenses; no statutory percentage)Verified Sep 9, 2026View source of the estate. Estates under $75,000Va. Code § 64.2-600Verified Sep 9, 2026View source can use a small-estate procedure instead.
When Do I Have to Withdraw an Inherited IRA?
See which federal withdrawal rules apply to an inherited IRA, Roth IRA, or employer plan, the deadline year, and the missed-withdrawal tax.
How Much Does Probate Cost?
Probate on a $500,000 estate in Virginia costs an estimated $29,411Va. Code §§ 64.2-105(B)(12) (fiduciary employs and compensates counsel), 64.2-1208(A) (commissioner of accounts allows reasonable expenses; no statutory percentage)Verified Sep 9, 2026View source. Attorney fees run 2.5%Va. Code §§ 64.2-105(B)(12) (fiduciary employs and compensates counsel), 64.2-1208(A) (commissioner of accounts allows reasonable expenses; no statutory percentage)Verified Sep 9, 2026View source to 3.9%Va. Code §§ 64.2-105(B)(12) (fiduciary employs and compensates counsel), 64.2-1208(A) (commissioner of accounts allows reasonable expenses; no statutory percentage)Verified Sep 9, 2026View source of the estate under a reasonable-compensation standard.
Who Inherits Without a Will?
Without a will in Virginia, a surviving spouse takes the entire estateVa. Code § 64.2-200Verified Sep 10, 2026View source when every child of either spouse is a child of both, and descendants divide what passes to them per capita with representationVa. Code § 64.2-202Verified Sep 10, 2026View source.
How Many Death Certificates Do I Need?
In Virginia, certified death certificates come from the Virginia Department of Health - Office of Vital RecordsVirginia Department of Health - Office of Vital RecordsVerified Oct 15, 2026View source; the first copy costs $15Virginia Department of Health - Office of Vital RecordsVerified Oct 15, 2026View source.
Do I Need Probate?
In Virginia, estates with personal property of $75,000Va. Code § 64.2-600Verified Sep 9, 2026View source or less skip probate with the Small Estate AffidavitVa. Code § 64.2-600Verified Sep 9, 2026View source, 60 daysVa. Code § 64.2-600Verified Sep 9, 2026View source after death.
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Virginia Estate Planning Resources
In-depth guides covering Virginia probate laws, trust requirements, and estate planning strategies.