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What is the IRS form which will divide the tax liability of inheritance from a trust between the heirs?

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The trust will tell you (via a Schedule K1 that you will receive sometime by March or so) how much money you received during the previous year and what the tax status of that money is. Inheritances are not taxable income to the recipient, and any estate tax due on the inheritance should have been paid by the estate before the trust received the inheritance money (or the trust should have paid the estate tax due before disbursing the money to the recipients). Either way, the beneficiaries are not liable for the estate tax payment (though the estate or the trust might try to claw back some of the distributions to beneficiaries if the estate tax or the income tax due from the deceased was not paid by the executor(s) of the will before all the inheritance was distributed to the beneficiaries without regard to such legal niceties such as "pay the taxman before spending the money." Note that the money that you get might include income (interest, dividends, capital gains from mutual funds etc) that has been generated by the inheritance money (and collected by the trust) before your inheritance was distributed to you, and if so, that portion of the money that you receive is taxable income to you; your Schedule K-1 will tell you how much that is, and which lines of your income tax return you should include this stuff on.

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