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Richard, Tax Attorney
Category: Tax
Satisfied Customers: 53673
Experience:  29 years of experience as a tax, real estate, and business attorney.
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I received $215,000 in cash transfered to my bank account from

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I received $215,000 in cash transfered to my bank account from my grandfathers trust. How much can I expect the IRS to take of that when I file my taxes in 2013? I dont want to invest alot in real estate if I am going to have to pay alot to the IRS at the end of the year and then not have the money to do that.
Welcome! My goal is to do my very best to understand your situation and to provide a full and complete answer for you.

Good morning. Can you tell me the circumstances of this distribution? Did your grandfather just die and this is basically a distribution to you of a portion of his estate through the trust? If not, can you tell me about the trust itself? Thanks.
Customer: replied 3 years ago.

Yes I believe he had different CD's and a money market account through intrust bank. They sent us the $215,000 in a direct deposit to my account. They did state that we may be getting more but that they were holding back what was necessary to pay taxes and any remaining bills that may come up.

They did state that at the end of the year we would receive some type of "K" for for tax purposes. He had over a million dollars in the trust and it was divided between us 5 grandchildren because our parents are deceased. He passed away in June of 2012.

Thanks for your response. If this was an inheritance, this will not be taxable to you as neither the Federal government or Kansas imposes an inheritance tax upon the recipient. The only exception would be if these funds were in a tax-deferred account such as an annuity or a retirement account such as an IRA or 401k and had not been previously taxed. Typically, if you were being distributed income from a trust, it would be taxable to you. But, in the case of an inheritance being paid from a living trust which became irrevocable at death and this is a distribution of his assets at death, it would be simply an inheritance and not be taxable.

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