What is the name of your state? Texas
Hello all,
Recently my wife's grandfather passed away leaving about a 1000 acre farm and about $300,000 in various accounts to be split between his 5 children. The farm is willed to each child as a 1/5th interest in the land with one of the children actually farming the land.
My question is about the cash. My wifes mother will recieve $50,000 or more in cash. She has a family trust already established that contains all of her assets. The heirs to her trust are her 3 children including my wife. She wants to put the money she will be inheriting into the trust but the problem is that she has a couple of judgements for various amounts against her b/c of problems caused in the last 10 years by one of her children. This child has many judgements against them and my wifes other sibling has judgements against her. My wife and I have worked really hard to be free and clear of any bad financial decisions and we are in good financial standing. The attorney that manages the trust suggested that my wifes mother decline/reject the inheritance and it would then go to her 3 children. Then the other 2 with judgements/untrustworthiness are to decline this inheritance as well and it will all go to my wife who will then put it into the family trust. This way the money will be protected from any judgement claims and it will ultimately make it to the people that she (mother in law) wants it to go to. If my wife goes through with this will she have to pay taxes on this $50,000 + cash if she puts it into the trust? If so at what tax rate? Any ideas or thoughts on this? Other than it should have been willed to the trust by her grandfather instead of to her mom!!
Any help would be greatly appreciated.
Thanks!
Hello all,
Recently my wife's grandfather passed away leaving about a 1000 acre farm and about $300,000 in various accounts to be split between his 5 children. The farm is willed to each child as a 1/5th interest in the land with one of the children actually farming the land.
My question is about the cash. My wifes mother will recieve $50,000 or more in cash. She has a family trust already established that contains all of her assets. The heirs to her trust are her 3 children including my wife. She wants to put the money she will be inheriting into the trust but the problem is that she has a couple of judgements for various amounts against her b/c of problems caused in the last 10 years by one of her children. This child has many judgements against them and my wifes other sibling has judgements against her. My wife and I have worked really hard to be free and clear of any bad financial decisions and we are in good financial standing. The attorney that manages the trust suggested that my wifes mother decline/reject the inheritance and it would then go to her 3 children. Then the other 2 with judgements/untrustworthiness are to decline this inheritance as well and it will all go to my wife who will then put it into the family trust. This way the money will be protected from any judgement claims and it will ultimately make it to the people that she (mother in law) wants it to go to. If my wife goes through with this will she have to pay taxes on this $50,000 + cash if she puts it into the trust? If so at what tax rate? Any ideas or thoughts on this? Other than it should have been willed to the trust by her grandfather instead of to her mom!!
Any help would be greatly appreciated.
Thanks!