My mother passed away in May. We are closing out her estate and I'd like to know some possible tax
implications regarding inherited funds, etc. I live in Texas, and the Estate is in Louisiana.
Here are my questions...
What are my income tax
implications on the following?...
1. Fixed Annuity (Single Sum Payment was issued with no tax withheld)
2. Traditional IRA Distribution (Single Sum Payment - 10% is being withheld)
3. Traditional IRA (Already transferred into a new brokered account under my name with Vanguard) - Comprised of a VMMXX Prime Money Mkt. Fund, a VIVAX Value Index Fund, and a VWELX Wellington Fund. If I sell, then what are tax implications? If I keep, what are tax implications?
4. Individual Brokered Account (VMMXX Prime Money Mkt. Fund, and a VFIAX 500 Index Fund). Currently, this is still in the estate's name via the Executor. We're trying to decide if the accounts should be sold and distributed to me now, or if I should just transfer into my account.
5. Life Insurance Distribution
6. Sale of her home
(These questions are mostly related to tax implications, but if anyone knows about whether I should keep the stocks and IRA's, etc. for investment reasons, I'd welcome any input as well...this is the first time I have ever dealt with investments).