Do I Pay Tithing on Inheritance Money?

The question of whether to pay a tithe on inheritance money is a common one, reflecting both financial considerations and deeply held beliefs. Tithing, a practice rooted in ancient traditions, involves dedicating a portion of one’s resources to a religious organization. When a significant sum like an inheritance is received, individuals often seek guidance on how this principle applies. This exploration delves into the various interpretations and practical approaches to tithing inheritance.

Understanding the Concept of Tithing

Tithing is a religious practice of contributing a portion of one’s “increase” or “income” to a religious organization. Historically, this meant one-tenth of agricultural produce or other material gains. The practice is found across various faiths, a symbol of gratitude and dedication.

The term “income” or “increase” for tithing purposes refers to any financial gain or material blessing. It includes wages, business profits, dividends, and other financial inflows. It emphasizes acknowledging the source of one’s prosperity and demonstrating stewardship over received blessings.

The underlying principle of tithing is giving from what has been received. This applies to various financial receipts, including those not directly earned. Many religious traditions view tithing as a means of supporting community needs like facility maintenance, leadership salaries, and outreach.

Religious Interpretations of Tithing on Inheritance

Religious traditions and theological viewpoints offer diverse interpretations on whether inheritance money is subject to tithing. A central debate classifies inheritance as “earned income” versus an “unearned gift” or “increase in substance.” Some perspectives consider inheritance an increase in financial standing, similar to other significant gains, and thus subject to tithing. This view emphasizes that all blessings, regardless of origin, are part of one’s increase.

Conversely, other interpretations suggest that inheritance is a transfer of existing assets rather than newly generated income, implying it may not be tithable. This perspective often distinguishes between income derived from personal labor or business activity and assets received as a gratuitous transfer. Some might argue that if the assets were already tithed upon by the deceased, they should not be subject to tithing again by the inheritor.

Major religious groups that practice tithing demonstrate varying stances, often leaving the decision to individual conscience or specific congregational guidance. For example, some traditions might view an inheritance as a direct blessing that should be acknowledged through tithing, while others might not explicitly require it. The guidance often emphasizes that the decision should be a matter of personal conviction and prayerful consideration rather than a rigid rule.

The concept of “increase” in older traditions, particularly in an agricultural context, often referred to the growth of crops or livestock. Applying this to modern financial instruments like an inheritance can lead to differing conclusions. Some might interpret “increase” broadly to include any augmentation of wealth, while others might limit it to active earnings. This nuance highlights why there isn’t a single universal answer, and interpretations vary significantly based on specific religious doctrine and individual understanding.

Practical Application of Tithing to Inheritance

If an individual decides to tithe on an inheritance, practical considerations arise regarding the calculation and application of the tithe. A primary consideration is whether to calculate the tithe on the gross amount received or the net amount after any associated expenses. Gross refers to the total value of the inheritance before any deductions. Deductions can include probate fees, attorney fees, appraisal costs, and any applicable estate taxes.

Federal estate tax applies only to large estates, exceeding $13.99 million per individual in 2025, meaning most inheritances are not subject to this tax. However, some states may impose their own estate or inheritance taxes, which can apply at lower thresholds. These taxes, along with probate court fees, legal fees, and other administrative costs, reduce the actual amount a beneficiary receives. Most guidance suggests calculating the tithe on the net amount, the sum actually received after necessary expenses are paid. This aligns with the principle of tithing on one’s true increase or gain.

Tithing on non-cash inheritances, such as real estate, stocks, or other investments, requires additional steps. The general approach involves determining the fair market value of the asset at the time of receipt. For real estate, this often necessitates a professional appraisal. For publicly traded stocks, the market value on the day of transfer serves as the basis.

Once the fair market value of the non-cash asset is established, the tithe is calculated on that determined value. If the asset is not immediately liquid, such as a house or land, it may not be practical to pay the tithe until the asset is converted to cash through a sale. In such cases, the tithe would then be calculated on the proceeds from the sale, after deducting sale costs. This ensures the tithe is based on the tangible benefit received from the inheritance.