Hi. My cousin passed away in Florida. I am being awarded part of his estate. It will be a cash award.

Florida does not have an estate tax. Even if it did, estate taxes are paid by the estate prior to distribution to beneficiaries. However, PA does have an inheritance tax. I have never dealt with the PA inheritance tax, so you should check with a local estate attorney. However, my understanding is that the PA inheritance tax does not apply to an estate that has no connection with PA. If this is a cash distribution directly from the estate, there should be no income tax, and likely no inheritance tax.

Florida does not have any inheritance tax. The residency of the decedent is what determines state inheritance tax, not the residence of the beneficiary. If the entirety of the estate is in Florida, you will not be subject to state inheritance tax. However, if some of the property of the decedent is located outside of Florida, you may owe inheritance tax - such as ownership of property located in Pennsylvania. Pennsylvania will tax a non-resident estate for any personal or real property located in Pennsylvania. Other states similarly tax non-resident estates. As to Federal Estate tax, unlikely. It depends on the size of the estate and the extent of life-time giving. The current exemption from Federal Estate tax is $5.43 million. Most estates will not reach this level. As to Federal or State income tax, you may owe money depending on what is being transferred to you. If you receive something like stocks, you might owe income tax on any distributions to you this year (such as dividends or interest). If you only receive cash, you should not owe any Federal or State income tax.