No will, no executor

[madmike208]

What is the name of your state (only U.S. law)? Oregon and Idaho

My step father died without a will last week. My brother had all of the physical property transferred into his name before my stepfather died. He is also joint on the bank account that contains all of the cash from my stepfather and my deceased mother. My stepfather told us he wanted us to split the money after his death. My brother is going to give the siblings their equal share but my question is this: How can I prove that this is an inheritance since there is no will, no probate, and really no trustee or executor? My brother just owns everything outright since he had it all put in his name prior. So am I going to have to take my share as a gift and pay gift tax? Thanks for any advice!

 

[Zigner]

What is the name of your state (only U.S. law)? Oregon and Idaho

My step father died without a will last week. My brother had all of the physical property transferred into his name before my stepfather died. He is also joint on the bank account that contains all of the cash from my stepfather and my deceased mother. My stepfather told us he wanted us to split the money after his death. My brother is going to give the siblings their equal share but my question is this: How can I prove that this is an inheritance since there is no will, no probate, and really no trustee or executor? My brother just owns everything outright since he had it all put in his name prior. So am I going to have to take my share as a gift and pay gift tax? Thanks for any advice!

The first hurdle you have is that, even if there were an estate to be distributed, you are not an heir.

 

[FlyingRon]

As far as taxation goes, federally, there's no TAX for you to pay. Gift / Estate tax is paid by the donor/estate. Unless his lifetime gifts and estate value is in the millions, you're within the excluded amount and no tax is due.

You don't indicate what state your stepfather resided in when he died. Oregon similarly has a $1 million exclusion on the estate transfer tx. Idaho follows the federal exclusion schedule as well.

Now the brother is free to give out the money from the joint account as he sees fit. It is his. Any disbursements are gifts from him NOT inheritance. Unless we're talking in excess of $13,000, there's nothing he needs to do to give it to you.

If there is other property that is properly owned by the estate, some sort of probate action is necessary to actually convey them and absent a will, the intestate succession rules apply. However, step children aren't in line to inherit anything in these situations. Only the surviving children (either natural or adopted).

 

[LdiJ]

As far as taxation goes, federally, there's no TAX for you to pay. Gift / Estate tax is paid by the donor/estate. Unless his lifetime gifts and estate value is in the millions, you're within the excluded amount and no tax is due.

You don't indicate what state your stepfather resided in when he died. Oregon similarly has a $1 million exclusion on the estate transfer tx. Idaho follows the federal exclusion schedule as well.

Now the brother is free to give out the money from the joint account as he sees fit. It is his. Any disbursements are gifts from him NOT inheritance. Unless we're talking in excess of $13,000, there's nothing he needs to do to give it to you.

If there is other property that is properly owned by the estate, some sort of probate action is necessary to actually convey them and absent a will, the intestate succession rules apply. However, step children aren't in line to inherit anything in these situations. Only the surviving children (either natural or adopted).

FYI, it went to 14,000 on January 1st of this year.