Estate Law

Estate law questions? Ask an estate lawyer.

Connect one-on-one with {0} who will answer your question

I live in NM and will be inheriting approximately $1.7M in…

Customer Question

I live in NM and...

I live in NM and will be inheriting approximately $1.7M in the form of Illinois farmland and approximately $200,000 in cash. I understand there is a $2M exemption in IL. Is this inheritance taxable as IL State Income tax? Of the $200,000 Cash, approx $100,000 is from life insurance annuities. Is this taxable only on my Fed and NM Income tax return?

Submitted: 7 years ago.Category: Estate Law

Show Less

Ask Your Own Estate Law Question

Answered in 3 minutes by:

1/24/2012

Estate Lawyer: Thomas McJD, Attorney replied 7 years ago

Thomas McJD, Attorney

Category: Estate Law

Satisfied Customers: 6,516

Experience: Wills, Trusts, Probate & other Estate Matters

Verified

Just to make sure I'm clear, did the death occur in 2011?

Customer reply replied 7 years ago

The deaths occured in 2011. Dad died 10-19-11, Mother died 12-9-11.

Estate Lawyer: Thomas McJD, Attorney replied 7 years ago

Then you are correct that the estate tax exemption in Illinois was $2 million for deaths occurring in 2011. Assuming everything passed to your mother on your father's death, there was no estate tax. Then the whole estate is taxable as your mother's gross estate.

If the whole estate is less than $2 million then no estate tax will be due for your mother's estate.

Finally, inheritance is not income tax taxable. Thus, you won't pay any income tax unless there was income for which the income tax was deferred, such as tax-deferred retirement, annuities, etc.

You didn't mention any assets of that type.

Your accept (by clicking the green "accept" button) would be greatly appreciated. Although you have made a deposit, I cannot receive credit for my work without your accept. Thanks.

Customer reply replied 7 years ago

I have received $100,000 in tax deferred annuities so far this year (2012). Is that state income taxable in IL or NM for 2011 or 2012? I know the Fed's will get their share as well!!

Estate Lawyer: Thomas McJD, Attorney replied 7 years ago

It would be transferred to you first and taxes should be paid under NM law. In any event, you won't pay state taxes in two separate states -- it will be one or the other. You should run that by a CPA when you file taxes to determine to which state the income should be reported.

Your accept would be appreciated.

Thomas McJD, Attorney

Category: Estate Law

Satisfied Customers: 6,516

Experience: Wills, Trusts, Probate & other Estate Matters

Verified

Thomas McJD and 87 other Estate Law Specialists are ready to help you

Ask your own question now

Was this answer helpful?

Yes

How JustAnswer works

Describe your issueThe assistant will guide you

Chat 1:1 with an estate lawyerLicensed Experts are available 24/7

100% satisfaction guaranteeGet all the answers you need

Related Estate Law Questions

Would there be a required tax return for 2017 on my

Would there be a required tax return for 2017 on my relative's Trust that I am the trustee of; the relative passed on 5-28-17. What does the IRS require?No assets, investment or home sale, have been l… read more

Loren

42,458 satisfied customers

I'm in Illinois. My father in law passed away recently and

I'm in Illinois. My father in law passed away recently and left my husband and me an annuity. We would like to pay taxes on it right away. We have the check, but don't want to deposit it without payin… read more

Richard

Owner

Doctoral Degree

53,741 satisfied customers

My mother passed away 4/17/15 and left me beneficiary to 2

My mother passed away 4/17/15 and left me beneficiary to 2 annuities totaling about $125K. I live in SC and my only income is Social Security. Will I have to pay taxes on this inheritance? Judith Dewh… read more

RayAnswers

Attorney

Doctoral Degree

6,613 satisfied customers

My understanding it that life insurance is not part of my Mother's

My understanding it that life insurance is not part of my Mother's estate for tax purposes in Massachusetts if the kids are named as beneficiaries upon her death? How does this work with annuities whi… read more

RayAnswers

Attorney

Doctoral Degree

6,613 satisfied customers

Are death proceeds paid to the Living Trust (sole beneficiary)

Are death proceeds paid to the Living Trust (sole beneficiary) at the death of the Grantor/Settlor taxable income to the Trust beneficiaries (adult sons), upon later distribution, if the same death pr… read more

socrateaser

36,603 satisfied customers

I live in Evanston Wyoming and my Dad passed away on Feb. 7th.

I live in Evanston Wyoming and my Dad passed away on Feb. 7th. He has left us three boys approximately $140,000 apiece. Can you tell me if this amount is taxable and if so, what is the percentage we w… read more

Lawyer Lori

Attorney

JD - Attorney

1,834 satisfied customers

estate qualifies as a small estate [under 100,000.00] and will

estate qualifies as a small estate [under 100,000.00] and will avoid probate. There are no living survivors [husband or children]. We were friends, are executors of the estate and shared a joint check… read more

RayAnswers

Attorney

Doctoral Degree

6,613 satisfied customers

my mom received annuities when her mom died as inheritance.

my mom received annuities when her mom died as inheritance. How will this affect her taxes for 2014?… read more

RayAnswers

Attorney

Doctoral Degree

6,613 satisfied customers

I am in charge of my mothers estate (though this is just a

I am in charge of my mothers estate (though this is just a family understanding), I also have two sisters. I have named beneficiaries to all her financial assets which value approximately $275,000. Th… read more

originallawyer

Attorney at Law

Doctoral Degree

905 satisfied customers

"ToCustomerquot; If someone inherits a company that is value

"ToCustomer If someone inherits a company that is valued at over 100mm what can one do to prevent the federal government from forcing them to sell it to pay the estate tax? How would such a company be… read more

socrateaser

36,603 satisfied customers

I have two questions. This first is about life insurance,

I have two questions. This first is about life insurance, inheritance, and estate taxes. It is my understanding that everything up to 3.5 million is exempt from federal and state estate taxes, as well… read more

ScottyMacEsq

Attorney

Doctoral Degree

1,334 satisfied customers

My mother died in 2010. She had a living trust and her estate,

My mother died in 2010. She had a living trust and her estate, including real estate did not exceed the value of $100,000. She had 3 annuity/IRA accounts totalling about $81,000. This money was distri… read more

John Legal

Doctoral Degree

3,418 satisfied customers

To Socrateaser Categorical questions about (fed & state)

To Socrateaser Categorical questions about (fed & state) taxes on inherited properties My father died recently and willed his possessions equally to three children. Last week, we received paperwork fr… read more

socrateaser

36,603 satisfied customers

I recieved a check from my Moms estate in November. The state

I recieved a check from my Mom's estate in November. The state of Missouri had taken out takes on the inheritacne. Do I need to report this in Kansas when I file my income tax?… read more

Isaac, Esq.

Attorney at Law

Doctoral Degree

42,160 satisfied customers

I am the beneficiary of my mothers variable annuity. Purchased

I am the beneficiary of my mother's variable annuity. Purchased for 200k, it is now worth 350k. She has never made systematic withdrawal from her account, and has no plans to do so. What taxes can I e… read more

John Legal

Doctoral Degree

3,418 satisfied customers

My dad is old and we own alot of land. We have a resort on

My dad is old and we own alot of land. We have a resort on this land that makes a modest living. We live in MN, and the property is taxed at about 3 million. Who should I contact about getting inherit… read more

Barrister

Attorney

Doctoral Degree

6,741 satisfied customers

Elderly mother died (CA resident). She was trustee of a revocable

Elderly mother died (CA resident). She was trustee of a revocable trust. Upon her death, trust to be distributed to her (adult) children. Will they pay taxes on thedistribution made to them from this … read more

Legal Eagle

Attorney

Doctoral Degree

538 satisfied customers

Mom died, I am executor. Will file no estate tax, but will

Mom died, I am executor. Will file no estate tax, but will need to file estate income tax as estate rec'd one time taxable death benefit of $10K. Not distributed yet. Don't want this on my taxes this … read more

lwpat

Doctoral Degree

6,615 satisfied customers

DISCLAIMER: Answers from Experts on JustAnswer ar Show More

DISCLAIMER: Answers from Experts on JustAnswer are not substitutes for the advice of an attorney. JustAnswer is a public forum and questions and responses are not private or confidential or protected by the attorney-client privilege. The Expert above is not your attorney, and the response above is not legal advice. You should not read this response to propose specific action or address specific circumstances, but only to give you a sense of general principles of law that might affect the situation you describe. Application of these general principles to particular circumstances must be done by a lawyer who has spoken with you in confidence, learned all relevant information, and explored various options. Before acting on these general principles, you should hire a lawyer licensed to practice law in the jurisdiction to which your question pertains.

The responses above are from individual Experts, not JustAnswer. The site and services are provided “as is”. To view the verified credential of an Expert, click on the “Verified” symbol in the Expert’s profile. This site is not for emergency questions which should be directed immediately by telephone or in-person to qualified professionals. Please carefully read the Terms of Service (last updated February 8, 2012).

JustAnswer in the News:

What Customers are Saying:

My husband has been driving me insane with questions regarding estate issues since his mother died. I'm not a lawyer! Thanks to JustAnswer, I was able to calm his concerns.
Loretta TIllinois

Thanks Adam!! - A very direct and understandable response - you have been a great help!
Happy CustomerEllicott City, MD

Mr. Kaplun clearly had an exceptional understanding of the issue and was able to explain it concisely. I would recommend JustAnswer to anyone. Great service that lives up to its promises!
Gary B.Edmond, OK

My Expert was fast and seemed to have the answer to my taser question at the tips of her fingers. Communication was excellent. I left feeling confident in her answer.
EricRedwood City, CA

I am very pleased with JustAnswer as a place to go for divorce or criminal law knowledge and insight.
MichaelWichita, KS

PaulMJD helped me with questions I had regarding an urgent legal matter. His answers were excellent.
Three H.Houston, TX

Anne was extremely helpful. Her information put me in the right direction for action that kept me legal, possible saving me a ton of money in the future. Thank you again, Anne!!
ElaineAtlanta, GA

< Previous | Next >

Meet the Experts:

Thomas McJD

Attorney

6,516 satisfied customers

Wills, Trusts, Probate & other Estate Matters

Barrister

Attorney

6,741 satisfied customers

19 yrs estate law, real estate. Wills/Trusts/Probate

RayAnswers

Attorney

6,613 satisfied customers

Texas lawyer for 30 years in Estate law

Ely

Counselor at Law

1,867 satisfied customers

Fully licensed attorney in Texas in private practice.

RobertJDFL

Attorney

1,618 satisfied customers

Experienced in multiple areas of the law.

P. Simmons

Attorney

1,335 satisfied customers

12+ yrs. of experience including estate law.

ScottyMacEsq

Attorney

1,334 satisfied customers

Licensed Texas General Practice Attorney

< Previous | Next >

Show MoreShow Less