My inheritance - Ask Rich / Money 101

Jenn026 · 10-12-2009, 09:45 PM

It looks like I will be inheriting a pretty reasonable amount of money soon. I was wondering if anyone knows how taxes work when it comes to inheritance. I've never dealt with anything like this before and was just wondering if anyone has any insight.

I don't know if it matters but I won't be keeping the money, really. My mother passed away with out a will. Her assets were split among my sister, step-dad and myself. I really don't need the money. I mean I could use it, but they are the ones who just lost an income. My step-dad is dealing with a lawyer. I already asked if I could just sign something turning over my inheritance to my step-dad. I can't do that. So instead, once I recieve it, i will just basically hand the money back over to him. I assume I will still need to pay taxes on it though. Anyone know anything about this?

Thanks in advance.

Jenn026 · 10-13-2009, 12:28 PM

Gunslinger · 10-13-2009, 12:30 PM

I have no clue, but I'll

for you.

I would google away!

~Jennifer~ · 10-13-2009, 12:31 PM

We are dealing with the same lot of ours is in stock as well!! Not sure on it thou my dad is handling all the lawyer stuff!!

I will add that its been going on 2 years since they passed and its still not final so be prepared to wait.. The small life ins checks have been dealt with and gave, however the big stuff will take some time to be finalized..
Best of luck on that...

decks · 10-13-2009, 01:21 PM

I don't know about the legal stuff but can I just say what a kind act that is...

Jenn026 · 10-14-2009, 02:08 PM

Originally Posted by decks

I don't know about the legal stuff but can I just say what a kind act that is...

Aww thanks. Well it's just not really my money, kwim?

Originally Posted by ~Jennifer~

We are dealing with the same lot of ours is in stock as well!! Not sure on it thou my dad is handling all the lawyer stuff!!

I will add that its been going on 2 years since they passed and its still not final so be prepared to wait.. The small life ins checks have been dealt with and gave, however the big stuff will take some time to be finalized..
Best of luck on that...

2 years!! Ugh. That's horrible. They really need that money. Ugh that's awful. No life insurance, so i guess it'll take forever? oh well.

Originally Posted by leftover

Any cash gift over $10,000 the giftee has to pay gift taxes on...

So if i recieve it as an inheritance, I pay the inheritance tax, but than if I turn around and give it away (and it's over 10k) I will have to pay tax on it again as a gift tax? Hmm if that's the case i might just use it and pay his bills for him.

leftover · 10-14-2009, 02:17 PM

So if i recieve it as an inheritance, I pay the inheritance tax, but than if I turn around and give it away (and it's over 10k) I will have to pay tax on it again as a gift tax? Hmm if that's the case i might just use it and pay his bills for him.

No, he'll have to pay taxes on the gift, not you. If it was me, I'd withdraw it in cash from the bank, buy him an 800 pound gun safe, and give him the cash to keep in the safe..

Michele · 10-16-2009, 08:42 AM

I'm dealing with something similar. Grandma passed away in August and we're waiting for the money to be distributed. My uncle, also the executor, is distributing it in $5k installments rather than just give it all at once and have to pay taxes on it. If you give the money away, whoever receives it has to pay taxes on it, I think...Not clear on that one because my dad gave my step mother 20k and HE had to pay the taxes on it.

Kym · 10-16-2009, 10:27 AM

Inheritance there is no federal tax on it if it is under a couple of million dollars. State tax depends on the state.
I know for my family we don't have to pay taxes on it because the state we are dealing with has no tax on that stuff.

Gift tax is now 13,000 but will go down again next year. We just covered this in class last night as a matter of fact.

Being an heir to the estate, you can not say I don't want it. I asked that to our lawyer and he said "nope, can't do that". Now if you don't want the money, wait until it is finalized and then give it as a gift.

My family has been dealing with this crap for 15 months now and it is finally in the end stages of being finished. It is so much easier when there is a will spelling everything out on who gets what

leftover · 10-16-2009, 10:35 AM

Originally Posted by Kym

Inheritance there is no federal tax on it if it is under a couple of million dollars. State tax depends on the state.
I know for my family we don't have to pay taxes on it because the state we are dealing with has no tax on that stuff.

Gift tax is now 13,000 but will go down again next year. We just covered this in class last night as a matter of fact.

Being an heir to the estate, you can not say I don't want it. I asked that to our lawyer and he said "nope, can't do that". Now if you don't want the money, wait until it is finalized and then give it as a gift.

My family has been dealing with this crap for 15 months now and it is finally in the end stages of being finished. It is so much easier when there is a will spelling everything out on who gets what

That's 13K gifted PER YEAR, right?

10-12-2009, 09:45 PM	#1 (permalink)
Jenn026 Senior Member Join Date: Mar 2008 Location: Seymour Johnson AFB Posts: 2,509 Classifieds: (0) Activity: 100% Longevity: 29%	My inheritance It looks like I will be inheriting a pretty reasonable amount of money soon. I was wondering if anyone knows how taxes work when it comes to inheritance. I've never dealt with anything like this before and was just wondering if anyone has any insight. I don't know if it matters but I won't be keeping the money, really. My mother passed away with out a will. Her assets were split among my sister, step-dad and myself. I really don't need the money. I mean I could use it, but they are the ones who just lost an income. My step-dad is dealing with a lawyer. I already asked if I could just sign something turning over my inheritance to my step-dad. I can't do that. So instead, once I recieve it, i will just basically hand the money back over to him. I assume I will still need to pay taxes on it though. Anyone know anything about this? Thanks in advance. __________________ Plan for the worst, hope for the best, and let your fears hibernate. ~Jacey Eckhart I my wifeys, Twilliams and CubLub63!

10-13-2009, 12:28 PM	#2 (permalink)
Jenn026 Senior Member Join Date: Mar 2008 Location: Seymour Johnson AFB Posts: 2,509 Classifieds: (0) Activity: 100% Longevity: 29%	__________________ Plan for the worst, hope for the best, and let your fears hibernate. ~Jacey Eckhart I my wifeys, Twilliams and CubLub63!

10-13-2009, 12:30 PM	#3 (permalink)
Gunslinger AKA Sarah Dee Join Date: Jul 2008 Location: Ramstein Germany, soon to be Hawaii Posts: 10,649 Classifieds: (0) Activity: 14% Longevity: 22%	I have no clue, but I'll for you. I would google away! __________________ I HANDLE REALITY WITH SARCASM AND A GUN PART OF TEAM AMAZING

10-13-2009, 12:31 PM	#4 (permalink)
~Jennifer~ Mrs.Fanntastic Join Date: Nov 2008 Location: Ft Huachuca Az... Posts: 1,969 Classifieds: (0) Activity: 16% Longevity: 17%	We are dealing with the same lot of ours is in stock as well!! Not sure on it thou my dad is handling all the lawyer stuff!! I will add that its been going on 2 years since they passed and its still not final so be prepared to wait.. The small life ins checks have been dealt with and gave, however the big stuff will take some time to be finalized.. Best of luck on that... __________________ ~MommaJ~

10-16-2009, 10:27 AM	#9 (permalink)
Kym Senior Member Join Date: Mar 2005 Posts: 10,429 Classifieds: (0) Activity: 18% Longevity: 79%	Inheritance there is no federal tax on it if it is under a couple of million dollars. State tax depends on the state. I know for my family we don't have to pay taxes on it because the state we are dealing with has no tax on that stuff. Gift tax is now 13,000 but will go down again next year. We just covered this in class last night as a matter of fact. Being an heir to the estate, you can not say I don't want it. I asked that to our lawyer and he said "nope, can't do that". Now if you don't want the money, wait until it is finalized and then give it as a gift. My family has been dealing with this crap for 15 months now and it is finally in the end stages of being finished. It is so much easier when there is a will spelling everything out on who gets what __________________ KYM

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10-13-2009, 01:21 PM	#5 (permalink)
decks Harley Girl Join Date: Mar 2009 Posts: 724 Classifieds: (0) Activity: 63% Longevity: 11%	I don't know about the legal stuff but can I just say what a kind act that is...

10-16-2009, 08:42 AM	#8 (permalink)
Michele Hard working mommy and wife! Join Date: Dec 2005 Posts: 2,087 Classifieds: (0) Activity: 2% Longevity: 67%	I'm dealing with something similar. Grandma passed away in August and we're waiting for the money to be distributed. My uncle, also the executor, is distributing it in $5k installments rather than just give it all at once and have to pay taxes on it. If you give the money away, whoever receives it has to pay taxes on it, I think...Not clear on that one because my dad gave my step mother 20k and HE had to pay the taxes on it.