What is the name of your state (only U.S. law)? I live in Texas... The money is coming from Ca and being paid to Az
My father recently passed away and what is in question here is his retirement money. There is roughly $500,000. He had 4 children. We will get a small amount of it on our end (less than $100,000). I was told that the company (LACERA) will hold out 20% for taxes for us off the bat. Is there anything else we need to watch out for in addition to the 20%?
Also there is the big issue of the rest the money ($400,000). It is to go to his ex-wife. She has told us that she was not going to hang on to it but disperse it to the 4 children. How should she go about holding taxes back to pay for the "gifting tax"? Does she even have to pay the gifting tax if all she is doing is dispersing his estate to his children? If so does she then have to pay an estate tax?
Please help me figure out what to watch out for and maybe the easiest way to go about all this.
Thanks for all your help
My father recently passed away and what is in question here is his retirement money. There is roughly $500,000. He had 4 children. We will get a small amount of it on our end (less than $100,000). I was told that the company (LACERA) will hold out 20% for taxes for us off the bat. Is there anything else we need to watch out for in addition to the 20%?
Also there is the big issue of the rest the money ($400,000). It is to go to his ex-wife. She has told us that she was not going to hang on to it but disperse it to the 4 children. How should she go about holding taxes back to pay for the "gifting tax"? Does she even have to pay the gifting tax if all she is doing is dispersing his estate to his children? If so does she then have to pay an estate tax?
Please help me figure out what to watch out for and maybe the easiest way to go about all this.
Thanks for all your help