Yahoo Answers is shutting down on May 4th, 2021 (Eastern Time) and the Yahoo Answers website is now in read-only mode. There will be no changes to other Yahoo properties or services, or your Yahoo account. You can find more information about the Yahoo Answers shutdown and how to download your data on this help page.
Trending News
My father just died in January in Pennsylvania, USA.?
my mother is sole beneficiary of his estate. I'm not sure what taxes his estate will owe, or inheritance taxes Mom may owe and/or what types of tax returns we have to fill out. Any guidance?
9 Answers
- ?Lv 76 years ago
A spouse can inherit without incurring penalty taxes - what they owned together is already considered assets of the marriage. The taxes would only come into play if you were to inherit it. You really should consult an accountant to close out his estate and visit an estate attorney to update your mother's will, power of attorney, health care proxy and if it is a substantial sum consider a living trust so that you and your siblings can limit the taxes you will owe upon her death. The attorney can advise how to settle his estate and either put the deed in her name or consider putting it "in the estate of her name." However currently the federal exemption level for taxes is about $5.4 million dollars (includes the value of all assets). By state it varies - but many at or above a million. You would have to look it up for your state. However, if anything happens to your mom where she is still living but can't make her own decisions - she has to determine who is going to make those decisions and make sure that person has access to money to use to take care of her - so you need to get those documents in order for the eventuality that you may be taking care of her in a few years.
- ?Lv 76 years ago
go see an attorney who specializes in family law, or a good CPA. Taxes and other fees will depend in part on what types of assets are in the estate and how the ownership of those assets are recorded. For example, whether they are in his name only or your mother was co-owner or a named beneficiary. At a minimum you will need to complete not only the 2014 income tax forms but also a final tax form as of the date of death. For stocks or other investments that are part of the estate you need to get the actual value as of the date of death. Life insurance payouts, on the other hand, are exempt from taxes. Unless the estate was very simple and uninvolved, an attorney or CPA is the best way to make sure all the correct paperwork is completed and well worth the expense during a stressful time for the family.
- wg0zLv 76 years ago
start at probate court. small estates don't usually result in any tax liability for any of the heirs. Mom has over a year to figure it out most of it, a form 1041 for Dad will have to be filed in 2016. Dad was alive for all of 2014 so the tax returns, etc for CY2014 will not involve estate issues.
- troLv 76 years ago
you probably need legal advice certainly not from this forum
but she will file a 2015 tax return as married jointly indicating the date of his death on the tax return
as for anything he might have in an estate if the documents indicated she is either the co owner or beneficiary, the assets would automatically be hers
if there was an estate, yes a 1041 is required and for this you will need a tax professional to help you
- Anonymous6 years ago
Probate procedures are state-specific. Your mother should seek the services of an estate attorney.
- Anonymous6 years ago
School work has to come first