Inheritance Tax

[Amylfugate711]

My Mother passed away and left.my sister and I some mutual funds from Fidelity and also my parents life insurance as we were the beneficiaries and also the Will

 At the end of this year when I do taxes will I have to pay the taxes? Even if both states that are involved doesn't require the Inheritance Tax???

[JamesG1]

Fidelity Investments should be able to split up your mother's investments in accordance with your mother's wishes.  Then both you and your sister will have your own Fidelity Investment account to report your own income earned on the investments.  It is possible that the investments will generate taxable income and taxes will be due next year.

In most cases, proceeds paid out from a life insurance policy is not taxable income.  See this TurboTax Help.

Contact legal counsel to assist you and your sister with administering your mother's will and dealing with all of these issues and other issues that may arise.

My sympathy to your for your loss.

[Amylfugate711]

Thank you so much for getting back with me 

I spoke with Fidelity and they just told me they didn't know? I also called Security Benefits and they said the Federal Withholding Tax had already been paid out and he didn't think this was titled as "Inheritance Tax" for State? 

Any input on your end? 

[DaveF1006]

To clarify, who is security benefits? Was it Social Security you called?