An inheritance can add to your finances, but taxes may reduce the amount that reaches you. Some states tax beneficiaries directly, while separate estate taxes may apply before assets are distributed.

Changes to inheritance tax rules are prompting more grandparents to contribute towards their grandchildren’s university costs, according to advisers.

New analysis is encouraging families to take advantage of existing inheritance tax (IHT) rules to grow wealth for future generations while reducing potential tax liabilities. Inheritance tax is a levy ...