Posted: 12/31/2010 3:45:12 PM EDT
My father died on the 27th. I will miss him greatly. He had land and a house that he spilt up between my sister, my brother, and me almost ten years ago so his largest assets have all been taken care of years ago. He does have some cash in the bank that still has to be divided. All of the accounts have my sister's name on them. She is an accountant and handled his accounting affairs. My question is will we have to pay taxes on this as income? Also, their is no bickering with my siblings about this or any of my father's other possesions. I'm just curious. My sis will probably handle all of this for me and my brother and I trust her completely, so does my bro. As far as this money goes, we all wish we didn't have to spilt it. The world is a lesser place for us three.
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i think that is a question best reserved for an accountant or probate attorney to answer, not someone on here, unless they happen to be an attorney or an accountant......
just my thoughts. AR15.com isn't exactly a resource for this kind of info...... my condolences for your loss though. |
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i think that is a question best reserved for an accountant or probate attorney to answer, not someone on here, unless they happen to be an attorney or an accountant...... just my thoughts. AR15.com isn't exactly a resource for this kind of info...... my condolences for your loss though. Probably true, but there is a wealth of experience on this site from different disciplines. |
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Does the will say you get part of the money ? I don't think he had one. He spilt everything up years ago in case something happened to him. His house and land were spilt amongst us kids 10 years ago. The only thing left in his name was his truck. We all know the amount he had in the bank. Yes, my sister could probably keep everything since it is in her name, but that ain't who she is. I know this will raise a skeptical eyebrow, but are family is really tight. |
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Quoted: Quoted: i think that is a question best reserved for an accountant or probate attorney to answer, not someone on here, unless they happen to be an attorney or an accountant...... just my thoughts. AR15.com isn't exactly a resource for this kind of info...... my condolences for your loss though. Probably true, but there is a wealth of experience on this site from different disciplines. I agree - there is a wealth of insight and knowledge on this site from all sorts of folks. OK - your sister is an accountant. if a CPA, then she'll know the info you seek, or already knows where to find it. next, thanks to Congress, or maybe no thanks to them bozos in DC., it sure looks like you and your siblings won't have to pay any ESTATE TAXES at all. why? In 2010, the Estate Tax exemption was repealed (forgive my terminology if wrong here; in other words, the exemption becomes infinite), anticipating that the 2009 Congress would enact something BEFORE 2010 regarding the estate tax. Well, they of course did nothing about it... The hope is that they will finalize something this 2011, but leave 2010 alone (that is, not make anything retro-active to 2010). Anyway, the Estate Tax exemption repeal for 2010 effectively says that if your uber-rich parents passed away in 2010, you inherit ALL of it with no taxes on the inheritance of the estate to you and your siblings. Prior to 2010, say 2009, the exemption was $2,000,000 per parent - each parent could pass up to $2,000,000 each ($4Mil total) to their heirs without estate taxes. But don't take my word for it. In addition to referring to your accountant sister's guidance and advice, you should also be well informed yourself: See Publication 559, Survivors, Executors, and Administrators. If you parents had IRA's wherein you and your siblings are beneficiaries, i strongly suggest referring to IRS Publication 590 if these were Traditional IRA's. There may still be taxes on the IRA distributions (like the mandatory RMD's) regardless of the estate tax exemption. Again, refer to your sister but be well informed. if you parents structured their IRA's fully considering that you guys would inherit them, then chances are they invested in the ROTH IRA version to free you from the drugdery of RMD's and taxable distributions. IRA's are one of the trickiest things to inherit. Siblings who decide to "split it up and take their share" rarely end up getting the most benefit from their parent's IRA's - because by splitting it up and taking their share, they forced a complee distribution and in the case of traditional IRA's, they often ended up paying huge taxes on it. |
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No estate taxes for 2010 anyway. If you were going to die and leave an inheritance, 2010 was the year to do so. 2011, not so much. Sorry for your loss but the above is the best cliff notes version of what the law currently is. The estate tax was being reduced on a annual basis until it hit zero in 2010. I haven't seen the details on the tax compromise but the estate tax exemption is in the millions going forward. You will still have to get the will probated, a local attorney will be able to help you with this. |