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Wendy Reed
Wendy Reed, Enrolled Agent
Category: Tax
Satisfied Customers: 3346
Experience:  15+ years tax preparation and tax advice.
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My uncle recently died. My aunt is clueless about finances.

Resolved Question:

My uncle recently died. My aunt is clueless about finances. I arranged for my cousin and her to meet with a tax accountant to discuss my uncle's estate (which is not large), tax considerations, and other issues she will now have to deal with such as getting her own medical coverage in the next year since my uncle's will cover her for 1 year after death, etc. My aunt is 74 years old and has to sell her primary residence, which she will have a gain of roughly $100,000. She lives in Maryland.

Is there any literature you can send me that I can share with my aunt and cousin as to what they need to think about now and how to get my aunt's personal finances in order.

Thank you.
Submitted: 5 years ago.
Category: Tax
Expert:  Wendy Reed replied 5 years ago.

Thank you for giving me the opportunity to assist you. I will give the best answer that I can with the information provided.

 

Hello there,

I am sorry for your loss.

 

If your uncle's estate was less than $1 million dollars, there would be no estate tax consequences at the MD or Federal level (federal amount 5 million).

 

There is also no inheritance tax for your aunt as in Maryland, property passing to widow or widower is exempt from MD inheritance tax. There is no federal inheritance tax.

 

Presuming that your uncle passed away in 2011, your aunt will file a joint return, as a surviving spouse for the year 2011, during 2012 tax season (Jan-April 15th).

 

She is probably on Medicare, but may need some type of other personal insurance if affordable---if paying for uncle's coverage after a year is not an option.

 

Here are some publications and websites that may help:

 

Survivors (tax considerations):

http://www.irs.gov/pub/irs-pdf/p559.pdf

 

 

Info from AARP about Medicare and Insurance:

http://www.aarp.org/health/medicare-insurance/

 

Policy search for Medigap (supplemental insurance)(this entire website is helpful)

http://www.medicare.gov/find-a-plan/questions/medigap-home.aspx?AspxAutoDetectCookieSupport=1

 

Medigap buyers guides and info:

http://www.medigapbuyersguide.com/

 

Here is a good article and resources for personal finances for widows:

http://www.bankrate.com/brm/news/sav/20000530.asp

 

I hope this gets you started! Please let us know if you have additional questions.

 

 

Wendy Reed and other Tax Specialists are ready to help you
Customer: replied 5 years ago.
Thank you.

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