Dear Liz: In a recent column, you quoted an attorney saying that if an inherited home in a trust is sold for its value at the date of death, the trust won’t owe capital gains. We sold our family’s house in 2007 within a month of my mother’s death and the government took half. Fortunately it was a really valuable house in Brentwood, but what are you talking about? I must be missing something.
Answer: If the government took half, then estate taxes — rather than capital gains taxes — probably triggered that hefty bill.
When your mother died, the estate tax exemption limit was much lower — $2 million, compared with the current $11.4 million. The top federal estate tax rate then was 45%, compared with 15% for capital gains.
Today’s top story: These 3 tricks can help you shop less. Also in the news: What you need to know about Slack’s IPO, a college survival guide for your money, and how to use travel rewards for a Memorial Day Weekend getaway.
Today’s top story: Why you shouldn’t give up on public service student loan forgiveness. Also in the news: The life-changing magic of working a bit longer, why your financial aid may plummet after freshman year, and 7 thoughtful and unique graduation gifts — all under $25.
Today’s top story: 5 steps to reaching financial freedom. Also in the news: How to furnish your new home without breaking the bank, growing your garden with only a little green, and how to compare and decipher college financial aid offers. 
Today’s top story: Understanding the closing cost for a home seller. Also in the news: How being neighborly can save you money, what homeowners ready to sell need to know about the changing market, and how increased China tariffs might cost you money.