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RobertJDFL, Attorney
Category: Estate Law
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Experience:  Experienced in multiple areas of the law.
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My father set up an annuity through State Farm and my sister

Customer Question

My father set up an annuity through State Farm and my sister and I are beneficiaries. We will receive @ $$700. per month for 10 years. Must we pay estate tax on this.
Submitted: 11 months ago.
Category: Estate Law
Expert:  RobertJDFL replied 11 months ago.

Thank you for using Just Answer. I look forward to assisting you.

You don't pay estate taxes on it, but you will receive a 1099r for the amount of distribution and the taxable portion. You would pay federal tax based on your tax bracket as ordinary income.

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Customer: replied 11 months ago.
The CPA included it on our PA tax owed at 4.5 percent. My Dad was 92 and saved all his life. He usually had his funds in CDs . He changed it to the annuity because of his age his investment choices were limited. Thank you , I will definitely be back to ask you more questions once I talk to my sister.
Thanks, Kim
Expert:  RobertJDFL replied 11 months ago.

Sure! We are happy to help at any time. Kindly remember to leave a positive rating for me by clicking on the stars so I am credited for my time this evening. You can always ask related follow-up questions by replying back to me in this thread after rating for no additional cost. Thank you!

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