estate taxes


M

msmap

I've just inherited $1.65M brokerage account from my dad who
lived in Kansas. I've started looking at the estate tax
forms for both fed and state. At first blush it looks like I
will owe about $157,000 to the fed's and $70,000 to the
state. Do these numbers look right assuming no deductions?
If yes, I will need to look at planning to sell a lot of
stocks to cover the various taxes.

TIA,
msmap
 
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P

Paul

I've just inherited $1.65M brokerage account from my dad who
lived in Kansas. I've started looking at the estate tax
forms for both fed and state.
Do these numbers look right assuming no deductions?
If yes, I will need to look at planning to sell a lot of
stocks to cover the various taxes.
Why do you owe the estate taxes? Are you the executor of
his estate?
 
H

Helen P. OPlanick EA

I've just inherited $1.65M brokerage account from my dad who
lived in Kansas. I've started looking at the estate tax
forms for both fed and state. At first blush it looks like I
will owe about $157,000 to the fed's and $70,000 to the
state. Do these numbers look right assuming no deductions?
If yes, I will need to look at planning to sell a lot of
stocks to cover the various taxes.
You just inherited a slew of bucks and are asking for free
advice? There is really no way we can tell you if you are
right or wrong. Spend a few dollars and have the returns
professionally prepared.

Helen, EA in PA
Member of The Tax Gang
President, PA Society of Enrolled Agents
Campaigning for NAEA Board of Directors - Looking for YOUR vote
 
D

Drewremedy

I've just inherited $1.65M brokerage account from my dad who
lived in Kansas. I've started looking at the estate tax
forms for both fed and state. At first blush it looks like I
will owe about $157,000 to the fed's and $70,000 to the
state. Do these numbers look right assuming no deductions?
If yes, I will need to look at planning to sell a lot of
stocks to cover the various taxes.
This looks totally wrong. Taxes are a responsibility of the
estate. The executor should have made arrangement to pay the
taxes well before the actual funds were distributed to
heirs. And if the account passed to you via title then the
tax effect may have been visited back upon the estate pot
and not you either.

The numbers seem to be in the general ballpark but that sort
of depends upon what else is in the estate and what major
prior gifts if any were made.
 
D

Dave Woods, EA

msmap said:
I've just inherited $1.65M brokerage account from my dad who
lived in Kansas. I've started looking at the estate tax
forms for both fed and state. At first blush it looks like I
will owe about $157,000 to the fed's and $70,000 to the
state. Do these numbers look right assuming no deductions?
If yes, I will need to look at planning to sell a lot of
stocks to cover the various taxes.
Do yourself a favor and hire an attorney or CPA or EA with
estate experience. You're inheriting a LOT of money and
apparently are receiving an inheritance before the estate
pays its taxes. This is not something to be doing yourself.

--
David M. Woods, EA
Boston, MA 02109

Postings here are general information only and not to be
relied upon as advice.
 
M

msmap

Do yourself a favor and hire an attorney or CPA or EA with
estate experience. You're inheriting a LOT of money and
apparently are receiving an inheritance before the estate
pays its taxes. This is not something to be doing yourself.
I guess I didn't speak clearly. The monies came from TOD and
direct beneficiary. The actual estate is only about 26k but
the taxes are still due on the gross amount. I have already
engaged a lawyer and CPA in Kansas but was just trying to
prepare myself for what the gov'ts bills will be.
 
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L

Lin706

This looks totally wrong. Taxes are a responsibility of the
estate. The executor should have made arrangement to pay the
taxes well before the actual funds were distributed to
heirs. And if the account passed to you via title then the
tax effect may have been visited back upon the estate pot
and not you either.
If this was a joint account or a TOD account or a POD
account and if there's no tax clause in the will or
depending on state law, then in fact, you might owe the
estate tax personally and it wouldn't necessarily be paid
out of the estate pot. The attorney handling the estate is
your best source of information.
The numbers seem to be in the general ballpark but that sort
of depends upon what else is in the estate and what major
prior gifts if any were made.
Also, alternate valuation may also be a factor here, so
again, like others have said, get yourself to an attorney
with experience in estate taxes.

Linda
 
D

Dave Woods, EA

I guess I didn't speak clearly. The monies came from TOD and
direct beneficiary. The actual estate is only about 26k but
the taxes are still due on the gross amount. I have already
engaged a lawyer and CPA in Kansas but was just trying to
prepare myself for what the gov'ts bills will be.
Still no way of answering the question without doing the
estate return and reading the will.

--
David M. Woods, EA
Boston, MA 02109

Postings here are general information only and not to be
relied upon as advice.
 
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H

Herb Smith

I've just inherited $1.65M brokerage account from my dad who
I guess I didn't speak clearly. The monies came from TOD and
direct beneficiary. The actual estate is only about 26k but
the taxes are still due on the gross amount. I have already
engaged a lawyer and CPA in Kansas but was just trying to
prepare myself for what the gov'ts bills will be.
Whether the money came from TOD or Beneficiary accounts
makes no difference in calculating the size of the estate,
and the taxes due on that estate. Those designations only
effect distribution and override any Will designations. If
the money was sent to you prior to the estate paying taxes,
you will probably be required to come up with the tax
yourself. A rough figure is a combined tax of about $275,000
on a $1.65M estate.
 

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