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Investing/Strategies / Retirement Investing
|Subject: Re: inheritance and capital gains taxxes||Date: 12/28/1999 12:41 AM|
|Author: rjm1||Number: 16954 of 76082|
Hello everyone and thank you in advance. I am new to your world and have already read alot of amazing and simple
information. The way investing common sense has been witheld is deplorable,it has always seemed in code.What a
relief!I have become very concerned now because I underst and I am to inherit an amount of money. I may lose a large
percentage to taxes! My grandmothers money is in cd's and she will leave them to me. What do i ask of her? Form a
living trust? Reinvest somehow? All feeling aside she is very wise, this was hard earned money and I want to invest it
wisly when I inherit.
Neither you nor the estate will pay capital gains taxes. A trust will not change the taxes due. CD's should be easy to handle so I would not look toward a trust.
If the estate is large say 650,000 or more then you will have a federal estate tax problem. If you do have the problem she can give away 10,000 a year with out a gift tax problem.
You do not say if your gramdmother needs the income from the CD's etc. If it makes sense, she could invest half in low risk equity investments.
If she does not have a will then she should see an estate planning attorney.
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