If my late mother left me as beneficiary on all her IRA’s and annuities but I want to share with my siblings, who would owe the income tax on that part of the money?

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If my late mother left me as beneficiary on all her IRA’s and annuities but I want to share with my siblings, who would owe the income tax on that part of the money?

I am also executer of her estate, however the estate was not listed as a beneficiary of any money. I have 3 siblings who have received the items that my mom wanted them to have but I am considering giving them some money by having the financial institution write a check directly to my siblings.

Asked on September 26, 2014 under Estate Planning, Texas

Answers:

M.T.G., Member, New York Bar / FreeAdvice Contributing Attorney

Answered 7 years ago | Contributor

Please speak with a lawyer and an accountant about what is the best way for you to do this.  Anything that goes to you directly would be your liability but if your state does not have an inheritance tax then you may be fine.  If it does and you would be subject to a tax liability then you might consider renouncing your inheritance (there are time limitations for that) and then seeing how that would go in to the estate and then the estate would pay the tax and distribute the funds. It is not an easy question to guide you on with out knowing more and seeing the Will.  Good luck.


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