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Most relatively simple estates (cash, publicly traded securities, small amounts of other easily valued assets, and no special deductions or elections, or jointly held property) with a total value under $1,000,000 do not require the filing of an estate tax return. The amount was $1,500,000 in 2004 and 2005. For 2006 through 2008, the amount is raised to $2,000,000.
So if her estate value did not exceed those limits there is no inheritance tax.
However you should receive a 1099 from the insurance company that will indicate how much of the amount you received is taxable. How you report that income will be determined by the type of 1099 you receive. Have you received a 1099? If so what type 1099INT, 1099R, etc.
Generally the the amount received in excess of what was paid in (basis) will be taxable as ordinary income in the year received.
If it has her SS# on then report the 1099R you received on your mother's final tax return. She may not have named a beneficiary or named the Trust as the beneficiary.
Who is the owner of the other two annuities? Who is the annuitant? Who is the beneficiary?
Most likely, however double check the 1099's when you get them.
Is there any special reason you deferred the others for 5yrs?
Perhaps but what is done is done. Will you need the entire lump sum in 5 years?
Check w/the insurance company to see if you can take some form of life income. Then it may be taxable only as you receive it. Of course that also depends on your current age and need for the cash. Just FYI check with the insurance company to see what opptions you may have in 5 years.
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Tax Preparer
25+ yrs Experience Personal Income Taxes - Former DM for H&R Block in California
Ok. It's been a pleasure to work with you.
Good Luck