My brother died about 2 weeks ago, and a couple days ago we all began settling the death benefit and all of the paper work, and so on. He was a Marine, so that's why it was such a big amount. My brother assigned my mother to be the beneficiary if anything ever happened to him, and it did. I heard that sometimes, a check can be taxed over 40%, which is outrageous. In a few weeks, my mom will recieve the $400,000, at which she was planning on writing out a check of $397,000 ish to give to his now widdowed wife, keeping $3,000 to pay for a few extra funeral costs. By default, she was already given $100,000 simply for being his wife. When she gets her half a million, will she be losing 40% to taxes? That's a $200,000 loss, simply by taxes. That's enough to survive 7 years if your smart about it, and they cannot take that much away. She has a 2 month old baby now too. Is there a method of transfer that doesnt show up on income tax, or something? I hope you guys can help! Good luck!
-Andrew
2007-08-16
08:12:06
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8 answers
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asked by
College guy
2
in
United States