inheritance tax

[dmount]

What is the name of your state (only U.S. law)? Indiana
my ex-husband passed 12 years ago and I was listed as his beneficiary on his life insurance, so I received those benefits years ago. Now I have recently received a letter from a retirement account he had and it stated there is money in an account in his name, that I am listed as beneficiary. My question is I know I would have to pay inheritance taxes on this money along with federal taxes and county taxes, would I have to pay inheritance taxes for the past twelve years since that was when he passed? If so, is it even worth trying to get this money since over half is going to federal and county taxes? It is only 8,000. Thanks for your advice, Debbie

 

[TinkerBelleLuvr]

What is the name of your state (only U.S. law)? Indiana
my ex-husband passed 12 years ago and I was listed as his beneficiary on his life insurance, so I received those benefits years ago. Now I have recently received a letter from a retirement account he had and it stated there is money in an account in his name, that I am listed as beneficiary. My question is I know I would have to pay inheritance taxes on this money along with federal taxes and county taxes, would I have to pay inheritance taxes for the past twelve years since that was when he passed? If so, is it even worth trying to get this money since over half is going to federal and county taxes? It is only 8,000. Thanks for your advice, Debbie

The monies you receive from the retirement account would probably be taxable income to you on your tax return. This would be the case if you withdraw it. Suggest seeing a financial adviser who will let you know what the minimal distribution would be on the monies. This is based on the assumption that this is an IRA or 401K type fund.

 

[LdiJ]

What is the name of your state (only U.S. law)? Indiana
my ex-husband passed 12 years ago and I was listed as his beneficiary on his life insurance, so I received those benefits years ago. Now I have recently received a letter from a retirement account he had and it stated there is money in an account in his name, that I am listed as beneficiary. My question is I know I would have to pay inheritance taxes on this money along with federal taxes and county taxes, would I have to pay inheritance taxes for the past twelve years since that was when he passed? If so, is it even worth trying to get this money since over half is going to federal and county taxes? It is only 8,000. Thanks for your advice, Debbie

You are ok on this one. You will have to pay regular state and federal income taxes on the money, but there will be no inheritance tax (I practice in Indiana) as you are the surviving spouse. A surviving spouse is 100% exempt from inheritance tax. I hope that you did not pay any inheritance tax on anything you inherited when he originally passed away.

You also could roll it over into a retirement account of your own and avoid all taxes at this juncture.