I need to know about inheiritance laws for the state of Arizona. No Will was involved. But since 2 of the heirs are in Arizona and they do pay state taxes, I'm wondering how much if any taxes they will have to pay on this inheritance. The value of the estate is less than 500,000.00. Will federal taxes need to be paid? as well?Thank you XXXXX
State/Country relating to question: Texas
This is the first inquiry,on this issue.
Hello and thank you for using Just Answer,Arizona no longer has an estate tax, additionally, Arizona does not impose an inheritance or gift tax.For US federal estate purposes, 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) do not require the filing of an estate tax return. A filing is required for estates with combined gross assets and prior taxable gifts exceeding $5,000,000 or more for decedent's dying in 2010 or later.
There would be no inheritance tax to pay and the estate would have to file a return if the assets were more than $5mi.
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DId you have another question about inheritance?
So there should be no inheretance tax to be paid by any heirs? and the inheritance is tax free?
There would be no inheritance tax, if any heir inherited specific items (retirement accounts or CDs, real property) they may have an income tax to deal with.
Let me know if you need more info
The estate consistists of, An employment 401K, a union pension and a SSI account. No other assets, no wife , no children and the estate has been legally turned over to myself as my brother's legal representative,. With 5 heirs. the estate is valued at less than 500,000 $. Just nee to know if the heirs will be responsible for any taxes.
If any of the heirs were named beneficiaries of the 401K or the pension, they will have tax to pay jsut as the deceased would have if they had received the distribution from the account. Depending on who was named as beneficiary of the accounts will determine who has to pay the tax on those.
Did the deceased name a beneficiary?
Yes he did ,( my father ), but we filed with the attorney to turn all of the estate responsibilities over to me. Through the courts of Pima county. My main concern is if any taxes need to be paid by any of the heirs. before they receive the payments.
If your father was named as beneficiary of the 401K and the pension, then your father will be taxed on the distributions to him from both. The turning over of the distributions to him will be made by the administartors of the 2 acounts. Your father will be responsible for paying the income tax on teh distributions and will receive a 1099R in his name form both sources. He will not have any taxes to pay until the year he actually receives the distributions.
I do not know if you have had a chance to see the IRS publication 559 (it covers the executor role) but here is a link to the pubhttp://www.irs.gov/publications/p559/index.html
As the responsibility to handle the paperwork has passed to you, it will be very helpful.
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