I just read Leona Helmsley's dog inherited 12 million, how do they pay taxes on that?

Answer 1

The money is in trust, and the trust will file a tax return for income on the $12 million each year. Any estate taxes will be paid by the estate.

She always was kind of a nut. I guess she didn't change toward the end.

Answer 2

The money is left to the dog in a trust with instructions for the care of the dog. The trust files a IRS Form 1041 (Trust return). By the way the dog does not take a personal exemption. Now is that fair.

Answer 3

Its not so much the $12 million that she left to her dog that would surprise me (after all, she had billions, whats $12 million to make sure your beloved pet is well taken care of for the rest of its life out of billions).

Whats funny, is that each of her Grandchildren only gets $5 million each :) (except the 2 she rather spitefully gave nothing).

Answer 4

There will undoubtedly be a trust account set up for the support of the dog. Income less expenses will be subject to fiduciary income tax. Its a dogs life.

Answer 5

Isn't that disgusting???!!!! People do the craziest things...anyway, the taxes would come out of the trust fund set up to care for the dog, either quarterly or annually, depending on how it was set up.