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Financial Planning / Tax Strategies
|Subject: Re: inheritance taxes||Date: 1/27/1999 2:04 PM|
|Author: TaxService||Number: 9065 of 121565|
My mother-in-law inherited $35,000 from her brother who died in Florida. She lives in New York. I know that Gov. Pataki signed a tax relief bill effective Oct. 1. 1998. Does this mean she doesn't have to report this as income since she received it after this date?
***I assume that if there were any tax liability, the estate would have paid it. If her brother died in Florida, the estate would be subject to the rules of that state, assuming her brother resided there. Only the income earned on your mother-in-law's share of the bequest would be taxable to her. If the income were earned within the estate, before being distributed to her, she should receive a Schedule K-1 (Form 1041) advising what is taxable and where to report the income on her tax return.
Also she has advanced Alzheimers and my husband has power of attorney. Her only sister is dying and she will inherit a considerable amount. Is there anyway for her to waive the inheritance and let the money be divided among her children? We take care of all her needs but fear that her other children may not like my husband having control.
***This is more of a legal question. You should rely on someone who is licensed to practice law for that one!!=:)
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