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So sorry to hear of your loss... <<big hug>>
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Thank you all so much for all of your support and sympathy. Thrif-t so I should not have to pay any taxes on her cd she has in the bank. It would only be about $4,000 each. I though there was something about being able to inherit about 1 mill tax free. I haven't really gotten to check into it yet but my sis said she thought we would have to pay taxes on it.Comment
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Estate taxes come out of the estate before you would inherit it. Estate taxes only apply on estates over 2 million (for 2008), so the estate should not have to pay any. In any case, you will not have to pay income tax on anything you inherit. Of course you would have to pay taxes on distributions from traditional IRAs, but not the transfer of ownership from your mom's estate to you.Comment
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I don't believe you'll have to pay taxes on the CD. I think it's similar to stock/mutual funds in a taxable account or a house: you inherit them at the value on the day a person passes away. If it increases in value after that day, then you owe taxes.
Just my 2 cents, so don't consider it a legal advice.
Sorry about your loss....Comment
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No you should not have to pay taxes on the CD and no estate taxes unless the estate is over $333,000(at least that is the figure for OH not sure if other states are different?)...we're going thru this right now and could be pretty close to that $333,000 figure but I don't think my moms house will go for what it used to be worth $200,000 in this economy...plus we'll take just about any offer we get to be done with all this.Originally posted by Hot dog View Post
You're 401k you'll definetely have to pay taxes on that if you cash it out. And if you do cash it out have them withhold the taxes from your share or make sure you put the money away to pay at tax time. I just had 15% fed and 10% state taken out of my share of my moms IRA and it was too much so I got a refund on my taxes this year. I'd rather a refund then have to pay so it worked for me.Comment
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