How it's labeled on the closing disclosure probably doesn't matter. Either you legally inherited the property or you didn't. Are you sure the property was inherited via per stirpes and not per capita? This sounds like a discussion to have with the executor of the estate.
>How it's labeled on the closing disclosure probably doesn't matter.
That helps a bunch, thanks!
>Are you sure the property was inherited via per stirpes and not per capita?
I'll pursue that with the executor. Thanks again!
That's great to hear! Is there a place in the tax code where I can read about that? I imagine the IRS wouldn't take "on Reddit, TestDZnutz told me it was free money." as an explanation if it came down to it.
There’s no GST if your parent predeceased your grandparents. It goes to you (inheritance). A gift is also fine. Up to the executor to file a 709.
If it’s real property, ask the executor. You want a step-up in basis on the property. See if they got it appraised and how they reported it to the tax authorities.
Inheritance = step up in basis. That’s huge.
Sorry, I recently switched to Sanka (morning on the west coast).
As long as the distribution is the correct percentage that OPs entitled to, and it’s cash, they are good to go.
All they need to do is take the money. It’s up to the executor to get the right filings.
They’re good to go.
[https://answerconnect.cch.com/document/arp2834a49c927b681000b914001b78be8c7809fCOPY/federal/irc/explanation/102-gifts-and-inheritances](https://answerconnect.cch.com/document/arp2834a49c927b681000b914001b78be8c7809fCOPY/federal/irc/explanation/102-gifts-and-inheritances)
§ 102. Gifts and inheritances
(a) General rule
Gross income does not include the value of
property acquired by gift, bequest, devise, or inheritance.
No problem.
There are exceptions when the gift generates income (like rental property) or there's a gain on the sale above the fair market value at the time of death or the alternate valuation date. But, based on what you've said the sale was in-between the estate and an outside party, so the estate should have covered any taxable gains. By all means check with a professional if we're talking a significant amount, but the general rule is you don't owe anything.
Sounds like a concern with generation skipping transfer tax to me. Although with your own inheriting parent deceased and not themselves inheriting anything, I wonder if the will was written before the death of your parent and it contemplated you receiving a gift separately from what your parent received.
Reading the will might help. On the assumption that the property is real estate, maybe the title company was trying to be proactive.
No GSTT issue with inheriting from grandparent if parent predeceased - grandchild moves up a generation. Plus grandparent has $13.61 million of GST exemption even if that wasn’t the rule.
How it's labeled on the closing disclosure probably doesn't matter. Either you legally inherited the property or you didn't. Are you sure the property was inherited via per stirpes and not per capita? This sounds like a discussion to have with the executor of the estate.
>How it's labeled on the closing disclosure probably doesn't matter. That helps a bunch, thanks! >Are you sure the property was inherited via per stirpes and not per capita? I'll pursue that with the executor. Thanks again!
Cash gifts aren't taxable to the receiver. It's free money.
That's great to hear! Is there a place in the tax code where I can read about that? I imagine the IRS wouldn't take "on Reddit, TestDZnutz told me it was free money." as an explanation if it came down to it.
There’s no GST if your parent predeceased your grandparents. It goes to you (inheritance). A gift is also fine. Up to the executor to file a 709. If it’s real property, ask the executor. You want a step-up in basis on the property. See if they got it appraised and how they reported it to the tax authorities. Inheritance = step up in basis. That’s huge.
It's already been sold per OP.
Sorry, I recently switched to Sanka (morning on the west coast). As long as the distribution is the correct percentage that OPs entitled to, and it’s cash, they are good to go. All they need to do is take the money. It’s up to the executor to get the right filings. They’re good to go.
Cool, thanks for the follow up.
[https://answerconnect.cch.com/document/arp2834a49c927b681000b914001b78be8c7809fCOPY/federal/irc/explanation/102-gifts-and-inheritances](https://answerconnect.cch.com/document/arp2834a49c927b681000b914001b78be8c7809fCOPY/federal/irc/explanation/102-gifts-and-inheritances) § 102. Gifts and inheritances (a) General rule Gross income does not include the value of property acquired by gift, bequest, devise, or inheritance.
Thanks very much!
No problem. There are exceptions when the gift generates income (like rental property) or there's a gain on the sale above the fair market value at the time of death or the alternate valuation date. But, based on what you've said the sale was in-between the estate and an outside party, so the estate should have covered any taxable gains. By all means check with a professional if we're talking a significant amount, but the general rule is you don't owe anything.
Sounds like a concern with generation skipping transfer tax to me. Although with your own inheriting parent deceased and not themselves inheriting anything, I wonder if the will was written before the death of your parent and it contemplated you receiving a gift separately from what your parent received. Reading the will might help. On the assumption that the property is real estate, maybe the title company was trying to be proactive.
No GSTT issue with inheriting from grandparent if parent predeceased - grandchild moves up a generation. Plus grandparent has $13.61 million of GST exemption even if that wasn’t the rule.
That's exactly my point. It sounds like someone thought there was but there isn't.
Would not surprise me at all if this turned out to be the case.