Ok part 2 to my previous question.?

Question

The check from my aunt's trust was from a cashed in mutual fund. Her estate is based upon many other investments. I'm guessing this is where the schedule k-1 comes in? Do I pay taxes on any monies these investments earned from when she died until cashed in?

Answer 1

The income earned after her death is fully taxable to you. Your Schedule K-1 should list this as whatever type of income it was, i.e. captial gains, interest, dividends, etc.

Answer 2

You would pay taxes based on what is reported on the K-1

Answer 3

inheritance tax.