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Richard
Richard, Tax Attorney
Category: Tax
Satisfied Customers: 45508
Experience:  29 years of experience as a tax, real estate, and business attorney.
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My mother whom did not have a will passed away in 2010. My

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My mother whom did not have a will passed away in 2010. My brother was the beneficiary to her ins policy of 100k and gave me12,500 my husband 12,500 and each of my 2 children 12,500, totalling 50,000. From my understanding he does not have to pay gift tax because it is to each person and under 13k. Is this correct?

Also, my grandmother passed away in 2010 and I am her executor of estate. Her and I had a joint account and from what I have been told from the attorney, since I am the survivor of that account, it goes to me. Now how is that money taxed if any? I also gave my brother and his wife each 12,500 totalling 25k. Once again, with it being under 13k, do I have to pay a gift tax? I have tried calling many accountants and am getting no where with this.

From my brothers and my joint account, we have paid taxes on my mother's and grandmothers houses. Is there something with taxes I have to factor in with that as well? My brother will be filling taxesz for my mother and I will have to with my grandmother being her executor. My grandmother only had SS coming in for income and a retirement from her deceased husband of 200/mo that I have the paperwork for.
Submitted: 3 years ago.
Category: Tax
Expert:  Richard replied 3 years ago.

Good afternoon. I have copied your narrative below and provided my answers to each of your questions after each one. My answers are indicated in bold, underlined, italicized text.

 

My mother whom did not have a will passed away in 2010. My brother was the beneficiary to her ins policy of 100k and gave me12,500 my husband 12,500 and each of my 2 children 12,500, totalling 50,000. From my understanding he does not have to pay gift tax because it is to each person and under 13k. Is this correct? You are absolutely correct....these would qualify under the annual gift exclusion of $13,000 per year, per person.

Also, my grandmother passed away in 2010 and I am her executor of estate. Her and I had a joint account and from what I have been told from the attorney, since I am the survivor of that account, it goes to me. Now how is that money taxed if any? I also gave my brother and his wife each 12,500 totalling 25k. Once again, with it being under 13k, do I have to pay a gift tax? I have tried calling many accountants and am getting no where with this. There was no estate tax in 2010 and there would be no tax consequences to you of the money received from your grandmoter. Again, there would be no tax on the subsequent gifts because they fall within the annual gift exclusion of $13,000 per person per year.

From my brothers and my joint account, we have paid taxes on my mother's and grandmothers houses. Is there something with taxes I have to factor in with that as well? Tax deductions can be taken for the property taxes paid by the people inheriting the properties in the ratio of such inheritances. My brother will be filling taxesz for my mother and I will have to with my grandmother being her executor. My grandmother only had SS coming in for income and a retirement from her deceased husband of 200/mo that I have the paperwork for. Based on those amounts and sources, you need file no final income tax returns or estate tax returns.

 

I hope this has given you the guidance you were seeking. I wish you the best of luck!

 

If you have a follow-up question, please remember that there might be a delay between your follow up questions and my answers because I may be helping other clients or taking a break.

 

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If you need additional clarification on this question after clicking ACCEPT, please do not hesitate to click Reply and I will be happy to do what I can to help you further. Thanks for allowing me to be of service to you.

 

The information given here is not legal advice. As all states have different intricacies in their laws, the information given is general only. This communication does not establish an attorney-client relationship with you. I hope this answer has been helpful to you.

Richard, Tax Attorney
Category: Tax
Satisfied Customers: 45508
Experience: 29 years of experience as a tax, real estate, and business attorney.
Richard and 4 other Tax Specialists are ready to help you
Customer: replied 3 years ago.

Thank you for your help! Just to ensure, because my attorney stated I needed to file taxes for my grandmother who only received social security and a retirement pension from her belated husband. This is the thing that is really confusing me.

Expert:  Richard replied 3 years ago.

She is not going to have enough income to necessitate filing a return. You can file it, but given she is going to owe now tax, you are not required to file it.

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