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RobertJDFL, Attorney
Category: Estate Law
Satisfied Customers: 12608
Experience:  Experienced in multiple areas of the law.
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My father set up an annuity through State Farm and my sister

Customer Question

My father set up an annuity through State Farm and my sister and I are beneficiaries. We will receive @ $$700. per month for 10 years. Must we pay estate tax on this.
Submitted: 6 months ago.
Category: Estate Law
Expert:  RobertJDFL replied 6 months ago.

Thank you for using Just Answer. I look forward to assisting you.

You don't pay estate taxes on it, but you will receive a 1099r for the amount of distribution and the taxable portion. You would pay federal tax based on your tax bracket as ordinary income.

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Customer: replied 6 months ago.
The CPA included it on our PA tax owed at 4.5 percent. My Dad was 92 and saved all his life. He usually had his funds in CDs . He changed it to the annuity because of his age his investment choices were limited. Thank you , I will definitely be back to ask you more questions once I talk to my sister.
Thanks, Kim
Expert:  RobertJDFL replied 6 months ago.

Sure! We are happy to help at any time. Kindly remember to leave a positive rating for me by clicking on the stars so I am credited for my time this evening. You can always ask related follow-up questions by replying back to me in this thread after rating for no additional cost. Thank you!