Legal Question in Tax Law in California

Tax on money just released from probate

My mother in CA passed mid March 2008. There was only a will and her entire estate (money only) went into probate in a bank account held as her estate. Money was just distributed to beneficiaries. Lawyers fees were also distributed. Must we pay taxes on money for 2008 and then file in 2009 to take advantage of reduction to taxes due to expenses


Asked on 4/03/09, 1:36 pm

1 Answer from Attorneys
Cyndi Perez Trostin

Re: Tax on money just released from probate

Funds from an inheritance are generally not taxed, unless there was income generated from the funds after your mother passed away, or if they were from retirement accounts.

You would need to report this income in the year it was reported by the estate or trust.

Similaryly, you would be able to take the expenses on your personal return in the year in which the estate/trust return reported them.

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Answered on 4/03/09, 2:03 pm


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