Inheritance Tax?

Factual Questions
1

IANAL. I hereby promise not to construe any responses as legally binding, nor is any contractual obligation formed or implied, so help me God, ipse dixit, e pluribus unum, Gallium in trinite partum divisio est.

An elderly relative of mine recently died. Her next of kin and only surviving relative informed me that I stand to inherit from her estate. It isn’t a ton of money, but it is not expected to be a token amount either.

What kind of taxes will I have to pay on this? This is all investment income, and her estate will be taxed before anyone of her relatives gets anything, but I expect Uncle Sam will want another cut when I get it.

Will this be considered when computing my taxable income, or are there other taxes on it? And does it depend on my other income this year?

All responses welcome. And thanks in advance.

Regards,
Shodan

2

No, from my understanding, any taxes are collected before you get it, then it’s just yours. It’s not earned income subject to the income tax.

And the estate has to be worth more than something like $1.2M before any taxes are taken out at all. IANAL. YMMV. Void where prohibited.

3

I work with estates on a regular basis and can confirm that you will not face any taxes on the amount you inherit. The estate will pass through probate and taxes, if any, will be paid at that time. You are free my friend.

4

In all likelihood, it will be more than that. My dear great-aunt outlived two husbands, both rather well-to-do, and had no children.

On the other hand, whatever we do get will be found money.

Thanks to you both for your response.

Regards,
Shodan

5

You and I my friend have two vastly differing perceptions of what “isn’t a ton”!

Thanks for the thread. I actually do have a token amount coming and was wondering if it’d just be 2/3 of a token before it arrived.