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All this is leading me to a much simpler strategy. I'll take my full half of the inheritance and gift to my sister whatever I was planning to disclaim. I'll keep the amount low enough not to trigger the gift tax, spreading it out over multiple years if necessary. Or I can have DW gift the maximum nontaxable amount as well, getting it done in one year.

Since the entire estate consists of bonds, cash, money markets, a CD and one single stock, it will be easy to liquidate and split in half. And easy to keep track of the income generated between the DOD and the time of the splitting for purposes of filing an estate return. In fact, if we split it within the next couple of months, there won't even be $600 of income to report.


That approach takes care of your tax issues. You might want to check with the probate court clerk's office to see what streamlined procedure may be available to you. It's luck of the draw, but sometimes those offices can be very helpful.

Phil
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