How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Stephen G. Your Own Question
Stephen G.
Stephen G., Sr Income Tax Expert
Category: Tax
Satisfied Customers: 6474
Experience:  Extensive Experience with Tax, Financial & Estate Issues
30050794
Type Your Tax Question Here...
Stephen G. is online now
A new question is answered every 9 seconds

My mom lives in Ohio. I live in Indiana. When she dies I

Customer Question

My mom lives in Ohio. I live in Indiana. When she dies I will inherit about 350,000 in money and annuities, ira's, and CD's. Are there any taxes or moneys that I am going to owe?
Submitted: 3 years ago.
Category: Tax
Expert:  Stephen G. replied 3 years ago.

Stephen G :

Hi & thanks for using our service. I'll do my best to give you a complete & accurate answer. Please ask me to clarify anything that is not clear.

Stephen G :

You won't have any income taxes to pay on the CDs, but you will on the annuities & the IRAs.

Stephen G :

As far as the IRAs are concerned, you will have some options available to you depending upon a number of factors including if your mother has reached her "required beginning date" (April 1st of the year following the year she turns 70 1/2). Also, depending upon your age at the time.

JACUSTOMER-96el5day- :

Will I have any other taxes to pay? And only txes on the interest earned on the annuity and Ira?

Stephen G :

The botXXXXX XXXXXne is that you should be able to spread the payments out over your lifetime, depending upon those factors as well as what the plan provides.

JACUSTOMER-96el5day- :

My mom is 88, I am 61.

Stephen G :

On the IRAs it isn't the interest, it is the whole thing, as you take it out.

Stephen G :

OK well she is already taking minimum distributions from the IRA.

Stephen G :

As far as the annuity goes, you will pay tax on the same basis as your mother is paying tax. There are a number of factors that enter into it, but again, she should have correspondence and the annuity contract that will give you the information, as well as the company will be able to respond to any questions you have.

Stephen G :

I would strongly advise you to seek local tax advice before you do anything with either the IRAs or the Annuity at the time your mother dies and you have to make the elections as to what you are going to do.

JACUSTOMER-96el5day- :

Thank You very much. Have a good day.

Stephen G :

Does she live in her own home that you will inherit?

Stephen G :

I'll leave you my contact information in case you have further questions and want to reach me here at JustAnswer.com. If you need to contact me again with any tax or financial questions, you can just ask for "Steve G" at the beginning of your question. Again, please remember to rate my response. Bonuses, where you think they are warranted, and excellent ratings, are always most appreciated. Thanks again for using JustAnswer.com.You may get a short survey from the site; if it isn't too much trouble I would appreciate it if you would answer it; the survey results are used to rate our performance;

Stephen G :

Please remember to rate my response as that is the only way we get credit for our work.

Expert:  Stephen G. replied 3 years ago.

Our chat has ended, but you can still continue to ask me questions here until you are satisfied with your answer.

 

Come back to this page to view our conversation and any other new information.

What happens now?

If you haven’t already done so, please rate my answers above. Or, you can reply to me using the box below.