# Spouse didn't pay inheritance tax. **URL:** \ **Category:** In My Humble Opinion\ **Created:** [December 20, 2010, 10:27pm UTC](https://boards.straightdope.com/t/spouse-didnt-pay-inheritance-tax/564883 "2010-12-20T22:27:50Z")\ **Posts on this page:** 20\ **Page:** 1
**Author:** ![fleetman](https://avatars.discourse-cdn.com/v4/letter/f/e9bcb4/32.png) [@fleetman](https://boards.straightdope.com/u/fleetman)\ **Post date:** [December 20, 2010, 10:27pm UTC](https://boards.straightdope.com/t/spouse-didnt-pay-inheritance-tax/564883/1 "2010-12-20T22:27:50Z")
Help, I’ve been married for 15 years. My spouse received an inheritance when both his parents died in a plane crash when he was a kid. He told me he didn’t want to ever touch the inheritance because it was “blod money”. I opened a letter from the IRS two months ago demanding tax on the spent inheritance. He spent it all, $250,000 over the years. We are now getting divorced. Am I responsible for any of this unpaid tax? How do I prove I didn’t know about this sham. Clueless ---
**Author:** ![fumster](https://avatars.discourse-cdn.com/v4/letter/f/e9c0ed/32.png) [@fumster](https://boards.straightdope.com/u/fumster)\ **Post date:** [December 20, 2010, 10:41pm UTC](https://boards.straightdope.com/t/spouse-didnt-pay-inheritance-tax/564883/2 "2010-12-20T22:41:14Z")
> [@fleetman](#): > > Help, > I’ve been married for 15 years. My spouse received an inheritance when both his parents died in a plane crash when he was a kid. He told me he didn’t want to ever touch the inheritance because it was “blod money”. I opened a letter from the IRS two months ago demanding tax on the spent inheritance. He spent it all, $250,000 over the years. We are now getting divorced. Am I responsible for any of this unpaid tax? How do I prove I didn’t know about this sham. > > Clueless The IRS only deals with Estate taxes which are paid by the estate not the individual receiving the inheritance. Some states have inheritance taxes which are paid for by the person inheriting the money. Whether or not he spent the money is irrelevant. See a lawyer to straighten this out. ---
**Author:** ![Randy\_Seltzer](https://avatars.discourse-cdn.com/v4/letter/r/ee7513/32.png) [@Randy\_Seltzer](https://boards.straightdope.com/u/Randy_Seltzer)\ **Post date:** [December 20, 2010, 10:50pm UTC](https://boards.straightdope.com/t/spouse-didnt-pay-inheritance-tax/564883/3 "2010-12-20T22:50:38Z")
> [@sh1bu1](#): > > See a lawyer to straighten this out. Agreed. On this issue, do not take any advice you receive over a message board without first consulting a real-life flesh-and-blood attorney. ---
**Author:** ![What\_the](https://avatars.discourse-cdn.com/v4/letter/w/f4b2a3/32.png) [@What\_the](https://boards.straightdope.com/u/What_the)\ **Post date:** [December 20, 2010, 10:54pm UTC](https://boards.straightdope.com/t/spouse-didnt-pay-inheritance-tax/564883/4 "2010-12-20T22:54:07Z")
> [@fleetman](#): > > Help, > I’ve been married for 15 years. My spouse received an inheritance when both his parents died in a plane crash when he was a kid. He told me he didn’t want to ever touch the inheritance because it was “blod money”. I opened a letter from the IRS two months ago demanding tax on the spent inheritance. He spent it all, $250,000 over the years. We are now getting divorced. Am I responsible for any of this unpaid tax? How do I prove I didn’t know about this sham. > > Clueless How did he spend it without touching it? ---
**Author:** ![Giles](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/giles/32/60_2.png) [@Giles](https://boards.straightdope.com/u/Giles)\ **Post date:** [December 20, 2010, 11:00pm UTC](https://boards.straightdope.com/t/spouse-didnt-pay-inheritance-tax/564883/5 "2010-12-20T23:00:47Z")
> [@What\_the](#): > > How did he spend it without touching it? I assume that he spent it without telling his wife **fleetman**. He just “told [her] he didn’t want to ever touch the inheritance”. ---
**Author:** ![MPB\_in\_Salt\_Lake](https://avatars.discourse-cdn.com/v4/letter/m/c0e974/32.png) [@MPB\_in\_Salt\_Lake](https://boards.straightdope.com/u/MPB_in_Salt_Lake)\ **Post date:** [December 20, 2010, 11:16pm UTC](https://boards.straightdope.com/t/spouse-didnt-pay-inheritance-tax/564883/6 "2010-12-20T23:16:37Z")
> [@What\_the](#): > > How did he spend it without touching it? BBQ tongs? ---
**Author:** ![moejoe](https://avatars.discourse-cdn.com/v4/letter/m/9de053/32.png) [@moejoe](https://boards.straightdope.com/u/moejoe)\ **Post date:** [December 20, 2010, 11:47pm UTC](https://boards.straightdope.com/t/spouse-didnt-pay-inheritance-tax/564883/7 "2010-12-20T23:47:52Z")
I lived through a very similar situation, my spouse inherited money, did not pay taxes (though told me we had-he spent that too) and then we divorced. And the IRS kept my federal tax return for YEARS until it was paid off. When I spoke with them they suggested filing an “innocent spouse” claim, saying that I was not aware that the tax money was due, thought it had been paid, whatever. They also said without any type of proof it was unlikely that I would get out of payment. This was the first year in forever that I actually got a refund check. I hope you have better luck. ---
**Author:** ![Lamar\_Mundane](https://avatars.discourse-cdn.com/v4/letter/l/85f322/32.png) [@Lamar\_Mundane](https://boards.straightdope.com/u/Lamar_Mundane)\ **Post date:** [December 20, 2010, 11:59pm UTC](https://boards.straightdope.com/t/spouse-didnt-pay-inheritance-tax/564883/8 "2010-12-20T23:59:21Z")
Edit: Misread the OP. ---
**Author:** ![What\_the](https://avatars.discourse-cdn.com/v4/letter/w/f4b2a3/32.png) [@What\_the](https://boards.straightdope.com/u/What_the)\ **Post date:** [December 21, 2010, 12:00am UTC](https://boards.straightdope.com/t/spouse-didnt-pay-inheritance-tax/564883/9 "2010-12-21T00:00:21Z")
> [@Giles](#): > > I assume that he spent it without telling his wife **fleetman**. He just “told [her] he didn’t want to ever touch the inheritance”. Ah-ha! Thanks!! ---
**Author:** ![samclem](https://avatars.discourse-cdn.com/v4/letter/s/a9a28c/32.png) [@samclem](https://boards.straightdope.com/u/samclem)\ **Post date:** [December 21, 2010, 1:09am UTC](https://boards.straightdope.com/t/spouse-didnt-pay-inheritance-tax/564883/10 "2010-12-21T01:09:09Z")
Since this is a personal legal question, we’ll first move it to IMHO where you can all the free legal advice and pay what it’s worth. I’d advise getting a lawyer. **samclem** MOderator ---
**Author:** ![Al\_Bundy](https://avatars.discourse-cdn.com/v4/letter/a/e79b87/32.png) [@Al\_Bundy](https://boards.straightdope.com/u/Al_Bundy)\ **Post date:** [December 21, 2010, 2:22am UTC](https://boards.straightdope.com/t/spouse-didnt-pay-inheritance-tax/564883/11 "2010-12-21T02:22:22Z")
In my state and most I know of, the tax is paid out of the estate and money comes across to the party free of taxation. From that point forward, any money earned on the money is fully taxable. So if your husband has been camping out on money that has paid interest, there would have been taxes due annually on that income. If property appreciated and was sold, profit on the appreciation would be taxed accordingly whether it was stock or real estate, etc. If he failed to declare that income, that would be illegal and something the IRS would pursue and it could involve you in the case of joint tax returns. It really sounds more like a story concocted to have you believe that the money no longer exists or has a liability attached to it so you would sign off. Yes, you need legal advice because conditions vary as to whether inherited wealth becomes part of the marital estate or can be claimed to be separate. Time of marriage and the specificity of the inheritance come to bear on this decision. ---
**Author:** ![davidm](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/davidm/32/225_2.png) [@davidm](https://boards.straightdope.com/u/davidm)\ **Post date:** [December 21, 2010, 2:31am UTC](https://boards.straightdope.com/t/spouse-didnt-pay-inheritance-tax/564883/12 "2010-12-21T02:31:10Z")
Isn’t $250,000 the cutoff amount for federal estate tax? Was the cutoff lower when he was a kid? How long ago was this? Why wouldn’t the IRS have gone after this years ago? As **Al Bundy** says, this doesn’t sound quite right. ---
**Author:** ![NinetyWt](https://avatars.discourse-cdn.com/v4/letter/n/cc9497/32.png) [@NinetyWt](https://boards.straightdope.com/u/NinetyWt)\ **Post date:** [December 21, 2010, 3:58am UTC](https://boards.straightdope.com/t/spouse-didnt-pay-inheritance-tax/564883/13 "2010-12-21T03:58:27Z")
> [@Al\_Bundy](#): > > It really sounds more like a story concocted to have you believe that the money no longer exists or has a liability attached to it so you would sign off. That wouldn’t explain the IRS letter. However, I wholeheartedly endorse your hiring an attorney who practices in this area of law. A good attorney is what you need. ---
**Author:** ![Rand\_Rover](https://avatars.discourse-cdn.com/v4/letter/r/db5fbb/32.png) [@Rand\_Rover](https://boards.straightdope.com/u/Rand_Rover)\ **Post date:** [December 21, 2010, 4:20am UTC](https://boards.straightdope.com/t/spouse-didnt-pay-inheritance-tax/564883/14 "2010-12-21T04:20:26Z")
If there really is a tax liability here (which seems kinda :dubious: as others have said), you may want to look into something called “innocent spouse relief.” ---
**Author:** ![Cazzle](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/cazzle/32/75_2.png) [@Cazzle](https://boards.straightdope.com/u/Cazzle)\ **Post date:** [December 21, 2010, 5:04am UTC](https://boards.straightdope.com/t/spouse-didnt-pay-inheritance-tax/564883/15 "2010-12-21T05:04:43Z")
> [@moejoe](#): > > I lived through a very similar situation, my spouse inherited money, did not pay taxes (though told me we had-he spent that too) and then we divorced. Did your ex’s inheritance pre-date the marriage (like the OPs) or occur during it? That could factor into the outcome. ---
**Author:** ![Gatopescado](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/gatopescado/32/5711_2.png) [@Gatopescado](https://boards.straightdope.com/u/Gatopescado)\ **Post date:** [December 21, 2010, 5:09am UTC](https://boards.straightdope.com/t/spouse-didnt-pay-inheritance-tax/564883/16 "2010-12-21T05:09:41Z")
This OP is spam. ---
**Author:** ![davidm](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/davidm/32/225_2.png) [@davidm](https://boards.straightdope.com/u/davidm)\ **Post date:** [December 21, 2010, 1:27pm UTC](https://boards.straightdope.com/t/spouse-didnt-pay-inheritance-tax/564883/17 "2010-12-21T13:27:26Z")
> [@Gatopescado](#): > > What is “blod money”? > This OP is spam. I think the OP meant “blood money” which would mean money that was earned due to death. Usually the term is used when the person who receives the “blood money” was somehow complicit in the death but I don’t that’s the implication in the OP. As far as it being spam, I’m also slightly suspicious of the OP’s motives in posting this. It could be a prelude to a screed against [del]death tax[/del] inheritance tax, but in fairness to **fleetman** it could be a legitimate question. ---
**Author:** ![Dewey\_Finn](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/dewey_finn/32/4222_2.png) [@Dewey\_Finn](https://boards.straightdope.com/u/Dewey_Finn)\ **Post date:** [December 21, 2010, 1:40pm UTC](https://boards.straightdope.com/t/spouse-didnt-pay-inheritance-tax/564883/18 "2010-12-21T13:40:22Z")
I think **Al Bundy** might have identified the issue. If the money was inherited when the spouse was a child, it presumably earned investment or interest income for years (possibly twenty years or more). That’s certainly subject to taxation, although it should have been declared and paid each year. ---
**Author:** ![Earl\_Snake-Hips\_Tucker](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/earl_snake-hips_tucker/32/3269_2.png) [@Earl\_Snake-Hips\_Tucker](https://boards.straightdope.com/u/Earl_Snake-Hips_Tucker)\ **Post date:** [December 21, 2010, 2:17pm UTC](https://boards.straightdope.com/t/spouse-didnt-pay-inheritance-tax/564883/19 "2010-12-21T14:17:36Z")
I think this is a dead issue. I think **fleetman** has left the building after this introductory post. ---
**Author:** ![What\_the](https://avatars.discourse-cdn.com/v4/letter/w/f4b2a3/32.png) [@What\_the](https://boards.straightdope.com/u/What_the)\ **Post date:** [December 21, 2010, 3:00pm UTC](https://boards.straightdope.com/t/spouse-didnt-pay-inheritance-tax/564883/20 "2010-12-21T15:00:30Z")
> [@davidm](#): > > I think the OP meant “blood money” which would mean money that was earned due to death. Usually the term is used when the person who receives the “blood money” was somehow complicit in the death but I don’t that’s the implication in the OP. > > As far as it being spam, I’m also slightly suspicious of the OP’s motives in posting this. It could be a prelude to a screed against [del]death tax[/del] inheritance tax, but in fairness to **fleetman** it could be a legitimate question. Who needs a prelude? [Next page](https://boards.straightdope.com/t/spouse-didnt-pay-inheritance-tax/564883.md?page=2)