Posted: 5/12/2007 3:51:20 AM EDT
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My wife received a copy of a trust from a lawyer indicating that she is named as a beneficiary of her Uncle's trust. He past away last month. She will only receive a small portion, but his worth is relatively substantial. So just for conversation's sake, let's say his estate is worth $100,000 and she receives 10%, will she get $10,000? Is there taxes beforehand, is her amount taxed as income? I realize there may be may be many variables. What say ya'll?  jj
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Do NOT take my info as fact but I have heard that an estate is only taxed if your "cut" is over $250,000. Now I do not know if that is true and I look forward to hearing the answer to this question because this will be an issue for me as well since my mother died recently and I am going to inherit some money from her estate. |
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If the inheritance is from a bonified "Trust" then the tax issue should not be an issue. I'm not gonna try to explain other than say a trust is much different than just inheriting a % of an estate. I don't understand it well enough to explain it. Get a CPA or tax |
| Even though the federal estate tax exemption may be $2 milllion currently, depending on the decedent's state of residence, there may well be state estate tax due. As stated before, this would be paid before estate "proceeds" are distributed to any heirs. The person responsible for settling the state (executor/executrix) will have to hire professional help (legal/acounting). |