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Delaying estate distribution

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C

CA-jack

Junior Member
Both of my parents passed away this year. Their assets are clearly laid out with a will in place. 4 siblings are in complete agreement on the execution of the will.

BUT... 3 of the 4 of us have children entering college either this year or next with more in the following years. We don't need the money from the estate and would like to delay the distribution for financial aid purposes. We are all willing to delay the distribution but the estate attorney says we need to give the IRS a reason.

Is this possible and how is it done? What kind of reason can we give the IRS to delay distribution?

Although I live in CA - the Estate is based in PA.
 


Zigner

Zigner

Senior Member, Non-Attorney
CA-jack said:
Both of my parents passed away this year. Their assets are clearly laid out with a will in place. 4 siblings are in complete agreement on the execution of the will.

BUT... 3 of the 4 of us have children entering college either this year or next with more in the following years. We don't need the money from the estate and would like to delay the distribution for financial aid purposes. We are all willing to delay the distribution but the estate attorney says we need to give the IRS a reason.

Is this possible and how is it done? What kind of reason can we give the IRS to delay distribution?

Although I live in CA - the Estate is based in PA.
Click to expand...
Why don't you just refuse the bequest?
 
T

tranquility

Senior Member
The attorney is telling me we have to give the IRS a reason to postpone.
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Yes. They will wonder why you took too long to wind up the estate. However, that's not what I was addressing.

You already have the money.

Google "constructive receipt".
 
C

CA-jack

Junior Member
tranquility said:
Yes. They will wonder why you took too long to wind up the estate. However, that's not what I was addressing.

You already have the money.

Google "constructive receipt".
Click to expand...
I guess the real question is: If I legally 'already have the money', do I have to report it for financial aid purposes whether it's in my bank account or not?
 
A

anteater

Senior Member
tranquility said:
Yes. They will wonder why you took too long to wind up the estate. However, that's not what I was addressing.
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Tranq - As long as any estate tax has been paid and any income tax gets paid, why would the IRS care?


Regardless, I doubt that the court would allow the estate to remain open for years.
 
C

curb1

Senior Member
CA-jack,

Yes, it needs to be reported for financial aid purposes. Depending on how much it is, it may, or may not, affect the financial aid package.
 
C

curb1

Senior Member
You are certainly entitled to not collect the money ..... ever. As it stands, the money is yours whether you collect it now, or later.

Be careful here, you could do more harm than ruining a financial-aid package.
 
J

joeyb

Junior Member
I think you are getting do it legal answers
Here's a cheat the system answer. Get a lawyer & challenge anything. Months if not yrs (in PA) of not distributing monies legally meant for you asap. But bear in mind the lawyers will bill, bank gains, court will take fees. But my experience is put it in the system & it can certainly take years to distribute no matter what the deceased wanted.
Anyone here want to tell me what to do about corrupt system?
 
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