Inheritance Tax

[Rratcliff]

What is the name of your state? North Carolina
My mother died in December of 2006, leaving my brother and I each one-half of her assets. This was in the form of a $20,000 (plus interest) CD, an annuity of $1,300 per month for ten years and $110,000 in a lump sum to each son. This was done in 2007. She was a resident of Oregon, and I reside in North Carolina. This was all done through PODs; nothing passed through the will, although there was a valid will stating the same thing: 50/50 to each son, no other heirs. If one son had died, everything went to the surviving son. There was no property or possessions of any kind. There was also about $5,000 in a joint bank account (my name and her name) which I have moved from Oregon to NC and have been using to pay her bills.
Will I need to pay an inheritance tax on these funds?
Thank youWhat is the name of your state?

 

[abezon]

No inheritance tax. No need to file an estate income tax return unless the estate received more than $600 of income before you trnasferred the assets to your names.

However, you & bro will have to pay income tax on the income received after Mom's death -- the interest and the annuity. Also check with the annuity company to see if mom bought the annuity with after tax dollars or if it was a retirement plan rolled into an annuity. If the annuity was purchased, you inherited your mother's basis & recover it as payments are received. See a tax pro for help next spring.

 

[FlyingRon]

No, you're well under the limits for inheritance tax.