Taxes on Inheritance

[ABQ2015]

Originally Posted by volosong

After distributing the bulk of the funds, one investment account was finally settled and they insisted on writing a check to me personally, and not to the trust. Along with it came a 1099, and sure enough, I had to pay taxes on it. That tax money had to come out of my own pocket.

My sister left her 401K to her four brothers and sisters through her will rather than by naming each of us as beneficiaries. My brother, the executor, cashed it out and we each had to pay taxes on our share. So I paid 1/3 of my share in taxes rather than rolling it over into a retirement account. While it was not a huge sum of money, it was disappointing.

[crystalys]

Here is some useful information:

State Estate and Inheritance Taxes in 2014 | Tax Foundation

[jw2]

The estate has to be over $1 Million to even have to file in Oregon Department of Revenue: Business Taxes Estate and trust taxes (Home)
There will not be a federal inheritance tax.

However, I believe the probate limit is $275,000 in Oregon. A lot will depend on if your parents had a trust and/or how the accounts were held. Your sister (the executrix) will have to research this or engage a professional.

[jlawrence01]

Originally Posted by Utopian Slums

Who are "they"? I thought you were the executor. Only an ignoramus, CYA type person give 1099s.

Or someone actually following the tax laws. Income received for services provided by an executor is taxable income.

[sjinnj]

Originally Posted by USAGeorge

The state should get every dime.......You didn't build that fortune....

Why?