Questions tagged [inheritance]

for questions related to the practice of passing on property, titles, debts, rights, and obligations upon the death of an individual. Please user appropriate "Country" tag.

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176
votes
11answers
43k views

I'm supposedly eligible for an inheritance from a distant relative. Offer appears to be legitimate

About 12 months ago, I received a letter ostensibly from a company carrying out genealogical research for law firms. It said that they were dealing with the estate of someone who had left money to my ...
61
votes
6answers
11k views

Wife is cosigned on a credit card with her parents — real assets are also shared. How to protect my credit?

A few years ago I got a credit monitoring app and started watching my credit score (high 700's). It's been climbing slowly and sends me an alert when I apply for new credit - like when I bought a car ...
46
votes
2answers
7k views

Best way to make sure my son has an income after I have died

I have a son with special needs, he is autistic and has learning difficulties. It is unlikely he will ever have a 'normal' life or be able to financially support himself. I am extremely worried of ...
37
votes
5answers
4k views

What would you do with a large land inheritance with high tax rate?

I just inherited a couple hundred acres of pristine woodland in New England. I'm a nature-lover, so my first impulse is to keep the land as-is, letting campers, trekkers, and wildlife just use it as ...
31
votes
4answers
9k views

22-year-old inherited 30k from 529 payout - what is the best way to invest?

I recently received the payout of my college 529, about 30k amount. It's been in a mutual fund with a private investor for about six months. It's the same investor my parents use. I recently got my ...
28
votes
5answers
8k views

My father has passed away and I want to buy his home

My father has passed away and I want to buy his home. There is no mortgage left and I will be paying off my sister half of the house value. Do I need to get a new mortgage?
26
votes
3answers
6k views

Credit card debt after cosigner passed away

My father is a cosigner on my brothers credit cards. He passed away last month. My brother is not paying off the debt. Can we remove my fathers name? Is my dads estate responsible? My brother owes ...
25
votes
5answers
7k views

Economic viability of surviving the death of a sole provider leaving a $500k inheritance?

Consider a hypothetical scenario with an 18 year old living in the state of Maryland in the United States, in his freshman year of college studying for a four-year degree in an engineering field. He ...
24
votes
1answer
4k views

I am distributing an inheritance based on verbal bequests. Is this considered a gift that must be reported to the IRS?

Before my mother died recently she gave me a verbal list of bequests she wanted to make that were not in her will. Some of these exceed $14k. I will be paying them out of my own bank accounts with ...
20
votes
4answers
18k views

I was contacted by a private bank overseas to get my inheritance

Someone I knew, who was in a Mexican prison, has passed away and apparently this person has left me money. The bank called me and gave me details to log into an online bank account where I could see ...
18
votes
4answers
8k views

What to do with a 50K inheritance [duplicate]

My grandma left a 50K inheritance and I'm looking for advice about the best way to use it. My husband and I have 3 kids (11, 3, 1) and are in our early 30s. We have: 60K in student loan debt 15K car ...
18
votes
2answers
5k views

Can you gift someone money for purpose of investing to avoid capital gains upon inheritance?

After reading through information on capital gains tax and estate tax, I read that a heir of an investment does not have to pay capital gains on that investment. That is it's transferred free and ...
17
votes
1answer
2k views

Should I set up a family trust?

I'm setting up a will in the near future and trying to decide if a trust is the right way to go. I'm in my thirties, married, and have two small children. Our assets consist of our home (mortgaged), ...
15
votes
3answers
1k views

Own my home, have no debt, and must start taking RMDs on an Inherited IRA. What should I do?

My father passed away and I have a sizable amount of money in an inherited IRA (about 2 times my yearly salary). I don't have any debt to pay off as I already own my home, auto, no credit card debt, ...
15
votes
3answers
2k views

Determining current value for real estate for inheritance purposes

It's my understanding that when someone dies the person who inherits their property has the value of that property reset for capital gains purposes. That is, if the property was purchased for $10,000 ...
14
votes
2answers
5k views

If you inherit a Roth 401(k), is it taxed?

My understanding is that a Roth IRA can be inherited and the U.S. government doesn't put an inheritance tax on it. Does that also apply to a Roth 401(k)? In other words, if I died, would my children ...
14
votes
6answers
6k views

What should a 21 year old do with £60,000 ($91,356 USD) inheritance?

I'm turning 21 years old soon and have an inheritance coming into my control to the value of approximately £60,000. I'm full-time employed, as a Software Developer in a Financial Services company. I ...
12
votes
2answers
1k views

Is there a way to disclaim an inheritance and decide who gets the inheritance that you disclaim?

Is there a way to disclaim an inheritance but be able to decide who gets the inheritance that you disclaim? FYI, we are talking about a non-spousal inherited traditional IRA account. The original ...
11
votes
6answers
4k views

How should I invest/spend this 50k inheritance?

I am 32 and work in the non-profit sector making 30k/yr. I own my home, which was recently appraised at 202k. I was given an inheritance of 50k from my grandmother. Based on my financials, how should ...
10
votes
3answers
3k views

What happens to 401(k) money that isn't used by the time the account holder dies?

What happens to un-withdrawn 401(k) funds upon the death of the account holder? Can they be transferred to an heir? What are the tax implications (if any) of this?
10
votes
2answers
886 views

I inherited a lump sum and paid off my debts. How can I preserve the value of remaining capital?

I managed to benefit from an inheritance lump sum payment overseas. After paying off my debts, I will still have majority of that inheritance lump sum. My goal for that money is to preserve its value. ...
9
votes
4answers
3k views

Gift house to parent then inherit it back to increase basis?

(Question for USA taxes.) Let's say that I have one remaining parent who is quite advanced in age. I own an investment house that has appreciated in value significantly. I want to sell it eventually, ...
8
votes
1answer
300 views

Grandmother's MetLife policy showing up as unclaimed property

Last week, a former co-worker encouraged me to search for unclaimed property in Michigan. I've done this before (several years ago) and did not find anything. However, since I changed jobs a few years ...
8
votes
2answers
1k views

Distant relative inheritance and outstanding debts

My mom's cousin Larry passed away earlier this year. He wasn't in touch with any family for the later part of his life, but when he became ill, he contacted my mom and she did a lot of work to help ...
8
votes
1answer
283 views

What happens when my 401K beneficiary is not my child, nor spouse?

I'm single and no child. My 401K beneficiary is my nephew. Should I pass away and he "inherits" my 401K, what will happen to it? How much will he be taxed for it? Is there a way to avoid any ...
8
votes
4answers
2k views

Should we use an expected inheritance to invest in a rental property with cash, i.e. no mortgage?

My wife and I will be getting an inheritance soon. There are many ways to invest this money. One thought we had was to take advantage of the down real estate market and buy a house for a rental ...
8
votes
1answer
528 views

How can I trade my 20% inheritance equity to a sibling for real property in their name?

My father passed away in July 2014. His residence was willed equally to his 5 children. One of my siblings wants to buy the property from the rest of us but needs a bigger equity share to get a loan. ...
7
votes
2answers
206 views

What to do with art whose price may sky rocket but is too costly to store?

My late father was an art buff, what I never expected (and he didn't tell) was that since I moved to live abroad, he had been collecting signed lithographs, drawing, artistic photos and rare books ...
6
votes
1answer
179 views

Does someone who inherited a house that was sold qualify as a first time buyer for Lifetime ISA?

My children are at University with large student debts. They have just lost their father suddenly and unexpectedly. He left no will, so they will inherit, but my eldest has not yet obtained probate. ...
6
votes
2answers
561 views

At what point is the contents of a trust considered to be the property of the beneficiary?

My grandmother passed away several years ago, and left a generous trust fund to her 5 grand children. We can access our share of the money when either of the following two conditions are met: We turn ...
6
votes
1answer
785 views

Cost basis step-up on inheritance of real estate

Assume there is a property owned by a couple with one son. When one parent dies, s/he bequeaths one half interest in the property to the son and half to the spouse. Two years later the property is ...
6
votes
1answer
434 views

Tax question - Inheritance from UK living in USA

I am a Green Card resident in Nebraska USA, and I am a UK citizen. Is it correct that I need to report to the USA Government if I inherit more than $10,000 from my father’s Will (he too was a UK ...
5
votes
1answer
327 views

How to establish--many years later--the fair market value of real estate on the day someone died?

The home passed to an heir in 2012. The heir did not have the home appraised at that time. The heir died in 2017 and the home was sold in 2018. How do you establish the FMV in 2012? Notes If the ...
5
votes
2answers
6k views

Can you borrow against a home that you don't fully own, i.e. inherited part, but without estate fully settled?

My brother and I were left our parents' home after they passed. My brother, executor of the will, resided in the house at the time of their deaths and I did not. The home is still in the name of "...
5
votes
2answers
163 views

Tracking Down Inherited Stocks

Recently, my father passed away. My mother is his sole heir (as is proper) and I am her only child, helping her navigate through to her new situation. All of us live (lived) in the United States our ...
5
votes
1answer
124 views

Stock sale by person living abroad

An American citizen friend of mine married a person in England some thirty years ago and has lived there ever since. A couple of years ago she inherited some Stock when her mother died. She has ...
5
votes
1answer
135 views

What needs to be done to transfer IRA accounts when someone dies?

My mother has died, and she had a number of IRA accounts in her name for which I am a 50% beneficiary. One was a Roth IRA. The Financial Advisor she was using wants to charge me exorbitant fees just ...
5
votes
1answer
2k views

Tax implications of gift from UK to US

My grandfather is advancing in years and has moved in to an senior citizen's home. He has decided to sell his former home and distribute the proceeds between his descendants. He is a resident and ...
5
votes
2answers
404 views

How much hassle is it inheriting shares?

A UK-resident relative has died and left their estate to be divided between a few people. The executors are still drawing up a list of assets to file for probate, and they include some stock. I've ...
5
votes
2answers
282 views

After the sale of my company, I’d like to make a cash gift to a friend who worked as an employee of my company

The cash gift will be paid from my personal bank account from the proceeds of the sale of the company. I will have already paid appropriate tax on the proceeds received from the sale as per the rules ...
4
votes
1answer
7k views

Transferring money from the Philippines to the USA?

I would like to bring in $150,000 from my bank in the Philippines to another bank here in the US. This money is from a lot I sold which was given to me (under my name) by my dad who has already passed ...
4
votes
2answers
2k views

Capital Gains taxes on an inherited house

My grandfather passed away in 2011 and my father inherited his house. We are looking to sell the property now and are concerned with capital gains taxes. The property has a market value of around $...
4
votes
4answers
261 views

How to handle house inheritance planning if one child moves in and adds in-law apartment?

My dad passed away unexpectedly and has left my mom alone in their house. I have two siblings and we all have a great relationship which I want to make sure stays that way. My parent's house is too ...
4
votes
1answer
651 views

What should a 19 year old with a moderate inheritance look for in a financial advisor?

This is not about me, but for the step daughter of a friend of mine. Her parents were divorced, her mother died. She is an only child and getting the assets from the estate. My friend isn't sure ...
4
votes
2answers
351 views

IRA Annuity when 1 of the 3 Beneficiary's owes estate

Mom died listing her 3 kids as beneficiaries on a 401k/IRA Annuity. One of the beneficiaries owes her $20k and she wanted it deducted from his share of any money in the estate. Since she listed the ...
4
votes
1answer
514 views

Given current market conditions, how / when should I invest a $200k inheritance?

Situation: I have $100k in an IRA with Betterment, plus just inherited $200k - currently cash. I'm 34 years old and salary is $97k, with no debt. Goals: IRA: growth of principle for retirement (...
4
votes
1answer
2k views

I inherited financial assets like stocks, bonds, etc. What should I do with them?

I'm specifically referring to financial assets like stocks, bonds, index funds, etc and to people who don't need to file an estate tax return; if they do need to file a return, they're certainly not ...
4
votes
1answer
1k views

How is an inheritance taxed in the United States?

My wife will be receiving an inheritance from her Uncle's estate. What are the federal tax implications?
4
votes
1answer
169 views

Capital gains on vacant land

My husband inherited vacant land when his mother died in 1990. His parents bought this property in 1946 if that makes any difference. We are selling it and am wondering what we will end up with after ...
4
votes
1answer
182 views

sorting out pensions on death

My mother passed away about 14 months ago. She had 3 pensions that are going to pay a lump sum out due to her death, she died before pensionable age. She nominated me and my two brothers to be the ...