Legal Question in Wills and Trusts in California
When both parents die, if one parent still receives monthly payments from, lets say, song royalites, is that forever taxable under the estate tax, or is that considered new income?
Asked on 1/09/13, 9:41 am
1 Answer from Attorneys
Chris Johnson
Christopher B. Johnson, Attorney at Law
Typically, the value of the song royalties at death would be included in the taxable estate (what a willing buyer would pay for those rights), though the taxes now wouldn't start until the estate of each parent is over $5.25 million. After that, the beneficiaries would then owe income tax on the royalties paid after the parents' death, just as the parents paid income tax on them.
Answered on 1/09/13, 9:44 am
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