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Greetings, Bbainesj, and welcome. You asked:

<<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. >>

If your grandmother's estate is large enough, then part of that estate is always subject to federal estate taxes. However, any non-IRA assets you inherit are taken at market value at the time she dies. And if that's the case, then she should be talking with an estate planning attorney to minimize that impact. In the case of ordinary CDs, you will have to pay no taxes if they are redeemed immediately. If you hold them, then you will pay taxes based on their gain from the date of death until you finally sell them. IMHO that's hardly an onerous income tax burden.

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