2007-08-30 04:47:59 · 5 answers · asked by tellthetruthabc 3 in Business & Finance ➔ Taxes ➔ Other - Taxes
No, the dog does not pay inheritance tax. Nor do her grandchildren who were left $5 million each.
Her estate will pay estate tax at 45% of the total transfers over $2 million.
This is actually a small amount amount relative to her total estate. While much is being made of the $12 million left in trust to care for her dog ... we are over looking is that she left approximately 99% of her $4 billion estate to charity.
So what she left for the dog was less than 3/10 of 1% of her estate. BTW, the $12 million stays in trust in perpetuity to maintain her mausoleum.
2007-08-30 05:25:26 · answer #1 · answered by CPA/PFS 2 · 0⤊ 0⤋
Leona's estate is obviously way over the limit for paying estate tax - the estate pays that, not the beneficiary, whether dog or human, for federal.
The money was left in a trust for the dog's care - the trustee will be responsible to ensure that annual returns are filed for the estate on any earnings from the money.
If a state inheritance tax is due from the beneficiary rather than the estate, the trust would take care of that also.
2007-08-30 12:06:37 · answer #2 · answered by Judy 7 · 1⤊ 0⤋
The money is left to the dog in a trust with instructions for the care of the dog. The trust files a IRS Form 1041 (Trust return). By the way the dog does not take a personal exemption. Now is that fair.
2007-08-30 12:36:24 · answer #3 · answered by ? 6 · 0⤊ 0⤋
I was wondering if her brother will just drop kick that ankle nipper and keep the ca$h
2007-08-30 12:24:47 · answer #4 · answered by Kimo 4 · 0⤊ 2⤋
I don't know, I was kind of wondering that myself.
2007-08-30 11:55:34 · answer #5 · answered by Anonymous · 0⤊ 2⤋