Eventually I will also receive a check from her estate (once settled). Will I have to pay inheritance taxes on these amounts?
2007-04-16 06:40:00 · 6 answers · asked by meg e 1 in Business & Finance ➔ Taxes ➔ United States
the taxes should be taken before you get the money
2007-04-16 06:43:24 · answer #1 · answered by skcs11 7 · 0⤊ 0⤋
The Federal Government has no Inheritance Tax. They only have Estate Taxes, and those are based on a number of Criteria that if there were any, would come out before any settlement was paid out to you.
As far as State Tax, that varies with your state. In my state there is no tax at all.
2007-04-16 06:48:03 · answer #2 · answered by Ken C 6 · 0⤊ 0⤋
Only if your state has an interitance tax and the estate didn't pay it on your behalf. There is no Federal inheritance tax and bequests are not taxable to the recipient.
If the distribution from the trust was part of the estate, it's tax-free to you at the Federal level. If it was a distribution of income that accrued since her death it is taxable as ordinary income. Your Schedule K-1 will explain all of that to you.
2007-04-16 06:44:48 · answer #3 · answered by Bostonian In MO 7 · 0⤊ 0⤋
There is no inheritance tax. There is an estate tax which is levied on the estate but the beneficiary who receives the amount is not taxed on it.
2007-04-16 07:09:54 · answer #4 · answered by Anonymous · 0⤊ 0⤋
Inheritance taxes will be paid by your great-aunt's estate, ie. the money that comes to you will have already been taxes, and no taxes will be do by you.
2007-04-16 06:43:30 · answer #5 · answered by Bettina C 2 · 0⤊ 0⤋
no just skip the country and go to ARUBA ... no taxes there
2007-04-16 06:44:04 · answer #6 · answered by junkie 2 · 0⤊ 2⤋