This question comes from Sue and is a question I hear a lot.
Q: I will be receiving an inheritance from my mother, some time this year or maybe next year. I don't really know the amount but probably aroud 100,000. My mom died in Vermont and I live in California. Will I end up paying CA taxes on the amount? if so are other states better? Her estate at death was probably around 1,000,000 but my really dysfunctional sister is the excecutor, so I don't know. Thank you. Sue D.
A: Good news, Sue. There is no income tax on an inheritance. And based on the size of your mother's estate, there shouldn't be any estate tax either. So the $100,000 (when you get it) will be free and clear from the IRS or the State.
Warmest regards,
Tom
Comments (1)
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Posted by Cornelius Schuchardt | May 20, 2011 2:32 PM
Posted on May 20, 2011 14:32