What is the name of your state (only U.S. law)? Iowa
My wife and her sisters inherited a portion of a family farm when their mother passed away 9/2001. The farm was in a trust, and at the time that we were taking care of all of the paperwork after she passed away, the daughters were added to the trust in place of their mother. My wife and one of her sisters are in Indiana, and the other sister is in Illinois.
This year, the family farm has been sold, and the trust will be dissolved as a result. My wife and her sisters are entitled to one third of the proceeds of the sale (which is easy to understand). The problem is that the lawyer taking care of the closing on the land says that no inheritance tax paperwork was filed at the time of my wife's mother's death. Our attorney at the time (I believe) made a determination that the filing would not be necessary because there wouldn't be any tax implications since the farm was in a trust. Was he correct?
We are being told that there needs to be a filing now for that inheritance back in 2001. What am I going to need to do to take care of that? And, additionally, what will be the tax implications now on the gains that we receive from the sale of the land?
My wife and her sisters inherited a portion of a family farm when their mother passed away 9/2001. The farm was in a trust, and at the time that we were taking care of all of the paperwork after she passed away, the daughters were added to the trust in place of their mother. My wife and one of her sisters are in Indiana, and the other sister is in Illinois.
This year, the family farm has been sold, and the trust will be dissolved as a result. My wife and her sisters are entitled to one third of the proceeds of the sale (which is easy to understand). The problem is that the lawyer taking care of the closing on the land says that no inheritance tax paperwork was filed at the time of my wife's mother's death. Our attorney at the time (I believe) made a determination that the filing would not be necessary because there wouldn't be any tax implications since the farm was in a trust. Was he correct?
We are being told that there needs to be a filing now for that inheritance back in 2001. What am I going to need to do to take care of that? And, additionally, what will be the tax implications now on the gains that we receive from the sale of the land?