158

Nobody legit will ever ask you for money to give you money. If there is a million dollar inheritance and it costs $1,000 to get the money to you, someone legit will take $1,000 from the inheritance and give $999,000 to you.


87

I was contacted by a private bank overseas to get my inheritance Umm, sorry - but no, you weren't. You were contacted by a scam artist who is banking on your greed outweighing your common sense. Inheritance & deceased estates don't work that way. The executors of the estate may be able to deduct some of their costs from the estate, but that's done ...


19

Well, no. True, a Roth has no income tax. The tax was already paid on deposit and no more tax due. But, the Roth, IRA or 401, still might be subject to estate tax, as it is still part of the estate for state and federal estate tax purposes. Keep in mind, the federal estate exemption is high, over $11M per decedent. State varies, by, well, state.


19

Going by your comments under gnasher's answer, the scam goes something like this: The scammer is, or is associated with, someone who knew the deceased in prison. They found out enough about you from the deceased to get your contact information. Then, when the deceased died, the scammer used this information to set up an advance-fee scam specifically ...


14

After a bit of searching, I found a Wall Street Journal article from 2012, “MetLife Settles Unclaimed Life-Benefit Probe”, and a follow-up article the same year “Michigan Joins Metlife Settlement Regarding Unclaimed Life Insurance Benefits”. Apparently, MetLife was involved in a class action suit in 2012 regarding their practice of closing life insurance ...


9

If no will was written, the Gesetzliche Erbfolge is followed. It has different orders of heirs. descendants parents and their descendants grandparents and their descendants … and so on The first order with living members is used, here the second order (§1925 BGB). That means his parents are each assigned half of his estate. Since they no longer live this ...


8

If you receive and accept an inheritance, there's 2 things you have to pay: Debts. Taxes. What's common to both is they only apply after you received the assets of the inheritance, and neither is owed to the executor. If you are worried about getting bad advice on the internet, and are concerned that the basic rules may not apply overseas, you can always ...


8

I don't think you'll find "official reasoning" from the IRS. The most reasonable explanation in my view is that it prevents double-taxation of estate assets and applies a consistent methodology for taxation of inherited property. The estate tax is based on inherited value, not the basis. Say you inherited a $50M estate that had a $1M basis. Upon inheritance ...


7

When the car goes from $400 to $600,000 in probate, will the estate owe capital gains on the car somehow, or does it get the new basis "for free"? No there are no taxes due on this part of the gain (assuming the overall estate is small enough to be exempt from estate taxes) - that's why the "step-up" in basis is so powerful. It's also why "giving" assets ...


7

As nearly everything, it has pros and contras. The benefit of having two assets is to be more diversified. If you have a tenant which ruins your property, and it is your only property, you are in a bad situation. If "only" one of two assets you own is affected, it is still bad, but not so bad as in the other example. On the other hand, as was already ...


7

If you're a beneficiary on a life insurance policy on the deceased then that money is yours - not the estate's - and the executor has no say over how it's used. If, alternatively, the deceased was a beneficiary on a life insurance policy and there were no other beneficiaries then that money would go to the estate, which would give the executor control.


5

As you say, you and your husband will owe capital gains taxes when/if you sell the land. From LotNetwork.com, article titled So You've Inherited Land .... What's Next? Death & Taxes ..... the tax treatment of inherited land can be tricky and may vary from state to state. Because your husband inherited the land 29 years ago, you do not have to ...


5

Since it's a sole proprietorship, all of the business's assets and liabilities will now be owned by the estate. The estate (in the person of the executor or executrix) then handles winding everything down. While still of sound mind and body, the spouse who owns it all should get with an estate attorney and plan all this out (including who will be the ...


5

One intent is to reduce double-taxation. If several people inherit a property with a low cost basis (say a house that was bought decades ago), then the most practical thing is usually for some or all of them to sell it and take the proceeds. With a very low cost basis, the total value of the property is effectively what is inherited. But in the US, there ...


5

The term for this is a Chain Marriage. Google results for examples are filled with hits for the phrase "ball and chain", but I did find one example that lasted 117 years. As far as I know, these are not considered the same estate by the IRS, so there would be no presumption of fraud.


5

Yes your inherited share disqualifies you from using the LISA for a first home, without being affected by the penalty. As I see it your options are to keep the money in the LISA to use for retirement, take the money out of the LISA and take the hit on the penalty, or if its not too late, hold off on accepting the inheritance or don't claim it at all. The ...


5

First question is who is the executor of the estate? Typically it falls upon that person to do things like file the final tax return. If it is your girlfriend, then she should do so. What I would do is contact a person in the state where her father lived to do the tax returns. Most of the work can be done online. A couple of products to look at are ...


4

You read. The loan agreement. Then you use basic financial math to calcualate a repayment schedule for the loan for the given interest rate and apply the done payments to it. That rental income was used to repay the loan is a totally irrelevant fact. It is like any other longer term loan ever given from a bank - there is a repayment schedule and you apply ...


4

Is that true? If that is the case, then the person inheriting the house and stock can sell them, say, 5 years later, and if there is no gain, pay $0 tax? And let's say if the law doesn't change, and the house and the stock is passed down to 5 generations, some 200 years later, and the person who sells them also has no gain between the time he receives ...


4

Depending on whether the SECURE Act becomes law1, your children may be forced to withdraw from the Roth account faster than you might like. It changes the Required Minimum Distribution (RMD) rules. As I understand it, the bill says a non-spousal inheritor must empty the account within 10 years of your death. While not a tax per se, it makes your scheme ...


4

Who pays the taxes and insurance is irrelevant. If your brother owns 1/3 of the house, and it's currently worth (say) $300,000, then you pay him $100,000. What the house was worth at any point in the past isn't relevant either (including if the house as gone down in value; if the house was worth $300,000 six years ago but is now only worth $150,000, his ...


3

This answer is based on what I believe to be true about transferring real estate between family members in Germany based on my personal life experience. I personally was a party to some family-internal real estate deals in my life, but I can hardly claim to be a professional in this regard. I would really recommend you to find a professional notary ("Notar") ...


3

…Given the fact the individual was also an employee of the company? As far as I have been able to determine, the fact the beneficiary was a past employee of a company you owned does not make a difference to your tax liability on gifting. The only tax liability I can see being relevant here is Inheritance Tax (IHT) if you die, which would be paid by the ...


3

Federal student loans (through the DoE) are discharged (automatically cancelled) upon death of the borrower. Private loans will depend on the terms of your loan with your lender. Some take the same approach as federal loans, but there is no standard and some will remain as debt with your estate.


3

One possibility is the IRA contains non-deductible contributions. If non-deductible contributions were made (meaning, no deduction was taken on the contributor's taxes the year the contribution was made for those contributions), then those portions were taxed prior to being contributed, and so they are not taxed - only the income beyond those contributions ...


2

Talked to an Elder Law/Estate Planning lawyer. We are in the process of setting up an irrevocable trust. I'm glad I posted and appreciate the comments which straightened out my thinking on this matter. It will be completely worth the cost of the trust to make sure nothing is left to chance.


2

Note: I am not a lawyer; this is not legal advice. The situation is likely to vary by state. It is likely to get complicated unless either (a) Daniel is a direct issue (child/grandchild etc.) of the Hiberts, or (b) their trust contains explicit clauses as to what should happen in the event of Daniel dying before the last of the Hiberts. If neither of those ...


2

There is an interesting read on Spanish inheritance tax at https://www.spanishpropertyinsight.com/2016/02/08/spanish-inheritance-tax/ Unfortunately, it describes this situation (UK estate, Spanish tax-resident inheritors) as "a scenario you categorically want to avoid for your heirs at all costs. It entails for your loved ones spending greater time, money ...


2

(This is from a UK perspective, and with the usual caveat that I am not lawyer but I have been the executor of a couple of wills. Other common law jurisdictions are likely to follow similar principles) FOUR ACTORS NOT THREE We need to distinguish 4 actors, not 3: A - Borrower B - Lender, who has died C - Trustees of the estate, created on B's death D - ...


2

Firstly, bear in mind, if CGT was due at all, you would only pay CGT on the gain you made on your share of the property, and only when you sell the property. If that gain is less than £12,000 you would be under the limit and would not have to pay any CGT. Secondly, if IHT is due at all, only the part of the house that was owned by the spouse that died would ...


Only top voted, non community-wiki answers of a minimum length are eligible