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Q: How do I get taxed on inherited money? ( Answered,   0 Comments )
Subject: How do I get taxed on inherited money?
Category: Business and Money > Finance
Asked by: durgad-ga
List Price: $15.00
Posted: 12 Dec 2005 09:24 PST
Expires: 11 Jan 2006 09:24 PST
Question ID: 604845
My mother recently passed. She had an IRA account with $165k and an
insurance policy for $55k. There were no beneficiaries on the IRA
account, and the entire estate (IRA and insurance) was shifted to an
estate that my uncle is the executor of. Once the money is in the
state, he is then responsible for doling out the money in accordance
to her will.

I understand that there is no "estate tax" on the money, but I don't know how I
will be taxed when the money is given from the estate to the people in
the will. How do I find out how much we will be taxed on the inherited
money once it leaves the estate and comes to me?
Subject: Re: How do I get taxed on inherited money?
Answered By: tutuzdad-ga on 12 Dec 2005 09:47 PST
Dear durgad-ga;

Thank you for allowing me to answer your interesting question. Tax
questions are a lot like legal and medical questions. We have to walk
a fine line here with regard to tax questions because we don?t want to
overstep our bounds when it comes to what we can advise and what we
cannot. The best we can do in answer to your question is to provide
you with published information about situations similar to yours. It
would certainly be in your best interest however to speak to an
accountant or other licensed authority about the intricate details
concerning tax law in your state, and I highly recommend you consider
doing that:

?Inheritance taxes are separate from estate taxes imposed by the
federal government and many states.

The Internal Revenue Service collects the estate tax on all U.S.
citizens and residents. The tax is levied on the deceased's estate as
a whole, filed on a single estate tax return and paid out of the
estate's funds. The U.S. government imposes no inheritance tax.

States, however, may impose an inheritance tax on beneficiaries who
receive property from the deceased. These taxes are assessed by states
in place of or in addition to state and federal estate taxes. The tax
is calculated separately for each beneficiary, and each beneficiary is
responsible for paying his or her own inheritance taxes.?

Taxes can be a very serious and complicated issue, especially when
inheritance is factored into the mix. To see if your state levies an
inheritance tax, and approximately what those taxes might amount to,
check Bankrate's state tax pages.

I hope you find that my answer exceeds your expectations. If you have
any questions about my research please post a clarification request
prior to rating the answer. Otherwise I welcome your rating and your
final comments and I look forward to working with you again in the
near future. Thank you for bringing your question to us.

Best regards;
Tutuzdad-ga ? Google Answers Researcher


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