Will I be taxed on money left to me by my grandfather?
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Will I be taxed on money left to me by my grandfather?
My grandfather recently died and left me $25k. My mother is an only child and executor of the Will. Do I have to pay taxes on this?
Asked on September 17, 2010 under Estate Planning, Mississippi
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 13 years ago | Contributor
You should check with a tax preparer or an accountant, but very likely no--you won't have to pay taxes. While the exact amount of the exclusion has varied quite a bit over the last decade, there's always some amount of inheritance which the heirs are not taxed on. I believe that even at it's lowest level, it's been well over the amount you write about--which means that you did not receive enough to pay taxes on it. In fact, I believe that in 2010, there is no estate (i.e inheritance) tax for one year, after which it reverts to taxing amounts inherited over $1mm. Since this area changes alot, and could be influenced by how you received the money (e.g. if it was left in trust for you), it's worth checking with a tax preparer, but very likely you will not be taxed on this amount.
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