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mlbronk
New Member

If I inherit $20,000 without being named in the will, is it still an inheritance?

I was to have inherited half the proceeds of the house if sold after death. It was sold before death but the executor still wants me to have the cash. Is it taxable?

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bwa
Alumni
Alumni

If I inherit $20,000 without being named in the will, is it still an inheritance?

You either received a gift or an inheritance.  Neither is taxable.

(And it sounds like a gift - e.g, the owner sold the property, died, and funds transferred to the estate were given to you.  if not in the will the transfer to you would have been a gift from whomever the beneficiary was that gave up the funds.)

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7 Replies
bwa
Alumni
Alumni

If I inherit $20,000 without being named in the will, is it still an inheritance?

You either received a gift or an inheritance.  Neither is taxable.

(And it sounds like a gift - e.g, the owner sold the property, died, and funds transferred to the estate were given to you.  if not in the will the transfer to you would have been a gift from whomever the beneficiary was that gave up the funds.)

mlbronk
New Member

If I inherit $20,000 without being named in the will, is it still an inheritance?

Thank you.  I thought a gift had to be $10,000 or less.

If I inherit $20,000 without being named in the will, is it still an inheritance?

Reportable Gifts are those that exceed $14,000 given by one living person to another person.
If this posted response is useful to you, please click on the upraised hand in the lower left of this post. Thank you. Scruffy Curmudgeon--PFFM/ IAFF, retired FireFighter/Paramedic - Locals 718/30, Veteran USAR O3 AIS/ASA '65-'67


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If I inherit $20,000 without being named in the will, is it still an inheritance?

In almost all cases, the Beneficiary pays no Inheritance Tax, nor Estate Tax.  

However, if you inherit an asset that itself will create income, you are liable to pay income taxes on that income generated.

Since the Estate bore the transaction of the sale, you need not report a sale of it as an investment asset. You either were gifted or inherited the cash.

The only question of Inheritance Tax relates to a very few states, and then it depends on relationship.  Where do you reside?

If this posted response is useful to you, please click on the upraised hand in the lower left of this post. Thank you. Scruffy Curmudgeon--PFFM/ IAFF, retired FireFighter/Paramedic - Locals 718/30, Veteran USAR O3 AIS/ASA '65-'67


NOT INTUIT EMPLOYEE
USAR 64-67 AIS/ASA MOS 9301 - O3

- Just donating my time
**Say Thanks by clicking the thumb icon in the lower left corner -it means nothing but makes those than answer feel wanted.
mlbronk
New Member

If I inherit $20,000 without being named in the will, is it still an inheritance?

Texas

If I inherit $20,000 without being named in the will, is it still an inheritance?

No Inheritance Tax in Texas.
If this posted response is useful to you, please click on the upraised hand in the lower left of this post. Thank you. Scruffy Curmudgeon--PFFM/ IAFF, retired FireFighter/Paramedic - Locals 718/30, Veteran USAR O3 AIS/ASA '65-'67


NOT INTUIT EMPLOYEE
USAR 64-67 AIS/ASA MOS 9301 - O3

- Just donating my time
**Say Thanks by clicking the thumb icon in the lower left corner -it means nothing but makes those than answer feel wanted.

If I inherit $20,000 without being named in the will, is it still an inheritance?

A Will might bequeath less than 100% to named beneficiaries, in which case the laws of your state determine who gets the remainder of the estate. That would be an inheritance.

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