I assume the estate is closed?If
Georgia has an inheritance tax, you should report it to them to get a tax clearance. I can't advise you to violate the law
, but, unless you need
a tax clearance to distribute the stock or cash in your name, it's unlikely the state will ever know. It's also unlikely that you will owe additional inheritance tax, even if you do report it, but that's not clear.
If it's other than "real property
", MD doesn't have an interest.
estate tax exemption was $600K then, but I'm pretty sure the statute of limitations
on the estate tax return
have run, even if you weren't required to file one.
Estate income tax returns
(Federal and state) are also closed.
If it was stock, MD should send you a form 1099-B
for the sale (in theory). You can then compute capital gains, with the value of the stock at your father's death (properly allowing for stock splits) as the basis. If you receive a 1099-B, "you" (acting as the estate) can send both you and your brother a nominee 1099-Bs to reflect your respective shares. In general, the two of you would pay tax on it just the same as if your father had sold it in his lifetime (with the exception of the basis recalculation due to his death), and the estate needs to issue the nominee 1099s with basically the same information as the 1099 "it" receives.
If you can't determine the source of the income, you can probably assume that it was converted to cash while he was alive (or, at least, by 2006), and hence not subject to income tax.
Edited by Arthur Rubin on 6/2/2010 at 11:46 PM EST