Legal Question in Wills and Trusts in Massachusetts
When i do my taxes do i have to claim inheritance from my dad's trust which include a mobile home sold for $33k (valued at $46k) and CD's valued at $15k?. In addition there was under $9k in probate, $1200 in Savings bonds, $3k in Columbia Mgt shares and $4800 in BNY Mellon IRA. FYI, the amt above were split between 3 siblings.
2 Answers from Attorneys
We do not have an inheritance tax in Massachusetts; however, there may be state and federal income tax on the income and capital gains earned on the sale of the assets. Consult a CPA.
If the estate was required to pay a tax on the size of the estate, it would be paid by the Executor. With respect to cash and CD's distributed to you, the interest accrued and for which no income tax was paid by the estate is income to you. If the inherited basis, see inventory file with the probate court, if the value for estate purposes was $46,000 and you sold it for $33,000, then you have a capital loss.
However this all depends on specific facts and I would take all the information to a CPA who can prepare your tax return this year for you.
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