Long term disability how much is taxable ?

[ChihuahuaMom]

What is the name of your state (only U.S. law)? PA..
I filed my husband's will. He has a Long term disability for about $10,000 .Also Vanguard accounts ( some in both names and a few in just his name.) How much of that is taxable ? I called and had the accounts put in my name ( I hope I did the right thing) I am trying to find a lawyer for some of these questions in my area but Legal aid doesn't handle estate matters and I can't afford a $350 consultation fee. Why do I have to file income tax form within 9 months ? I will have to do it at the beginning of the year anyhow. I am beginning to think that no matter what I do I will be in trouble.


Please help :0

Sandy

 

[anteater]

Are you saying that the LTD insurance had some sort of lump sum payment to his survivor?

It's a little tricky to give what sound like definite answers without knowing the exact transactions. But, if all that is occurring is transferring accounts solely into your name, then there should be no income tax consequences. Only if there are actual sales of assets would there be a taxable event.

You say that you filed the will. I assume that the will left his individually-owned assets to you (?).

Your mention of filing the income tax form within 9 months is a bit puzzling. Are you confusing income tax with the PA Inheritance Tax, which has a 9 month date of death deadline before penalties are assessed? i would have to go back and read up, but I think you still have to file the Inheritance Tax return even though there will be no tax due on assets transferred to you.