Uncles estate

[emeraldgrn]

What is the name of your state (only U.S. law)? California



My husbands uncle just passed away. He doesnt have a wife or children. We found out from my husbands mom that he left everything to his niece and nephew, which is my husband and his sister. He has 165,000 in a 401k. My husbands sister says that he told her everything is to be split between them, but she is claiming she is the only one listed as the beneficiary on the 401k. She says she will deduct the taxes to pay them before distributing his share to him. Here's my question. Won't we lose out on some of the money because she is in a lot higher tax bracket than us? Her and her husband makes 140,000 a year and have no kids. We make 70,000 and have 4 kids. I'm concerned we may lose 10,000 to 15,000 dollars that way. Not to mention she is just going to deduct whatever she thinks the taxes are going to be and we will never be able to tell if we were owed more. Is there anyway he can be legally spliting this 50/50 so we can be in our own tax bracket?

 

[tranquility]

What is the name of your state (only U.S. law)? California
My husbands uncle just passed away. He doesnt have a wife or children. We found out from my husbands mom that he left everything to his niece and nephew, which is my husband and his sister. He has 165,000 in a 401k. My husbands sister says that he told her everything is to be split between them, but she is claiming she is the only one listed as the beneficiary on the 401k. She says she will deduct the taxes to pay them before distributing his share to him. Here's my question. Won't we lose out on some of the money because she is in a lot higher tax bracket than us? Her and her husband makes 140,000 a year and have no kids. We make 70,000 and have 4 kids. I'm concerned we may lose 10,000 to 15,000 dollars that way. Not to mention she is just going to deduct whatever she thinks the taxes are going to be and we will never be able to tell if we were owed more. Is there anyway he can be legally spliting this 50/50 so we can be in our own tax bracket?

If one is designated as a beneficiary, while not CERTAIN under all legal theories, even if another is named with a specific heir for the funds, the beneficiary designation will transfer by law the funds to the beneficiary. All I'm saying is that there is some legal argument on your facts. Is it an argument that wins? No. Not even a little bit. Not even in the back of your mind. Yet, there have been cases...

There are many questions that could be asked, including the size of the estate. The Man wants his take from those who are rich. (From everyone, of course. For "death taxes" from the rich.)

What YOU have is irrelevant. What the facts of the situation are is. (I won't even get to what was said over what was done.)

Give more about the process of what is happening. First to the last. Maybe there is something. More likely, not.

 

[latigo]

What is the name of your state (only U.S. law)? California



My husbands uncle just passed away. He doesnt have a wife or children. We found out from my husbands mom that he left everything to his niece and nephew, which is my husband and his sister. He has 165,000 in a 401k. My husbands sister says that he told her everything is to be split between them, but she is claiming she is the only one listed as the beneficiary on the 401k. She says she will deduct the taxes to pay them before distributing his share to him. Here's my question. Won't we lose out on some of the money because she is in a lot higher tax bracket than us? Her and her husband makes 140,000 a year and have no kids. We make 70,000 and have 4 kids. I'm concerned we may lose 10,000 to 15,000 dollars that way. Not to mention she is just going to deduct whatever she thinks the taxes are going to be and we will never be able to tell if we were owed more. Is there anyway he can be legally spliting this 50/50 so we can be in our own tax bracket?

If uncle's estate consists entirely of the 401K account and it is true that uncle's niece is the sole beneficiary of the 401k, how does mom come by telling hubby that uncle left every to him and his sister?

Is it because uncle named niece as sole beneficiary with the verbal understanding that she would split it 50/50 with nephew? Is sister mistaken and niece and nephew are named as co-beneficiaries?

If the entire proceeds of the 401K account are due and payable to sister alone, the income taxing consequences are set and unaffected by her subsequent disposition of the funds.

She could no more reduce her tax liability by giving a portion to her brother than she could with respect to any other source of taxable income.

 

[Dandy Don]

If it is true that she was named as the only beneficiary, then your husband is lucky to be receiving anything from the 401K since sister doesn't have to give him anything.

Wait and see what actually happens and then deal with the tax ramifications then, if there are any. And in the meantime, be as polite to sister as you can be.

Is sister the executor of this estate? You did not mention whether uncle left a will that names your husband and his sister as beneficiaries or whether he just made a verbal statement saying that.