For decedents who died in the tax year 2008, any estate that was valued at $2 million or less did not have to pay estate taxes
, and no estate tax return
would be due.
When an estate does exceed the allowed amount which is exempt
from estate tax, then the executor of the estate files an Estate Tax Return to pay the estate taxes. At the same time he also issues K-1 forms to each of the estate beneficiaries
to report how much income
they received from the estate.
If your grandmother's estate did not exceed the exemption amount of $2 million, then no estate tax return needed to be filed, and therefore no K-1 forms are required.
which you received is not taxable on your federal tax
return and does not even need to be reported. Depending on the state
you live in or the state your grandmother lived in, there may be a state reporting
requirement, but it would not require a K-1 form to be issued. You would simply report the amount of the inheritance you received, again only if you live in a state which imposes an inheritance tax.
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