If my brother-in-law passed away and left a Trust to be divided between my wife, her mother and brother, how are federal taxes handled?
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If my brother-in-law passed away and left a Trust to be divided between my wife, her mother and brother, how are federal taxes handled?
The total each will receive is $47,699. These were the only assets he had. Will they be required to pay federal taxes on this amount and, if so, what percentage?
Asked on October 27, 2014 under Estate Planning, Virginia
Answers:
Christine Socrates / Christine Sabio Socrates, Atty at Law
Answered 10 years ago | Contributor
Typically, a decedent's estate would be responsible for any estate or income taxes owed. All taxes would be settled prior to the distribution of the trust. The heirs would not pay any tax for receiving the inheritance. The trust should be reviewed to see if there are any specific provisions regarding the payment of taxes to be completely sure. If you would like further assistance, please contact my office. www.socrateslegal.com
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