If I've recieved money from my late father, do i need to declare it as other income on my tax credits renewal?

Question

I rang them up and they said I need to only declare the interest earned from my inheritance. But after reading the notes that came with my renewal pack I think it says that I need to declare money recieved from an administrator, however I am the administrator! Does this mean if the money changes hands to a second person? or when it's paid to me?

Answer 1

You must report all monies, taxable or not to the IRS

Answer 2

It really annoys me that people give American responses to questions that are on the UK section and are regarding UK issues. I don't care if the IRS blah, blah, blah.....

Anyway - the tax credits pack refers to 'income' received from a trust or a deceased person's estate. This doesn't mean you any inheritance you received, this means arrangements where you will receive a set amount as income each year. The monies received from your late father's estate is an addition to your 'capital' that you do not need to declare. You will need to let HMRC know about any investment income (interest you get on any money you invest), but otherwise leave it out.

If you are still uneasy about this, telephone again and ask them to put a note on your file to say that you queried this and the response they gave you.

Answer 3

If the money was received before he died, it is a gift and is tax free up to a limit--I think it's $20,000--and any amount over that is subject to a gift tax which is paid by the giver, not the recipient.

If the money is part of the estate, then any taxes on the interest should have already been paid by the administrator (you) before the money was distributed to the heirs. If the esate was quite large, then some of it was also subject to the estate tax. As the administrator, you are responsible for seeing to this, but your probate attorney should have assisted you with the fine details.

Take a look at the IRS web site for further details--I haven't visited it for a while, but it was clear and well organized at that time.

Answer 4

its disgusting really, your dad has paid all taxes on his money, and they may want a cut of it, off you too now youve inherited it. you are supposed to declare all changes to your circumstances, and you get other people who are handed our benefits and health service on a plate, and they have paid no taxes ! Updated info : I am surprised ive got 2 neg votes, when it is true, what i said.

Answer 5

No, you don't need to declare.