Legal Question in Tax Law in Pennsylvania
My aunt passed away recently and my mother was left power of attorney. Through her work she had a life insurance policy that was paid to my mother to handle all of my aunts affairs but out of all that money i was left a significant amount. Will i be responsible for paying taxes on that amount or will i have to claim that amount at the end of year and pay taxes on it then?
Asked on 11/24/09, 6:37 pm
1 Answer from Attorneys
Terrence Valko
ERISA Disability Lawyer
The money passes outside of the Estate and will be treated as gross income to you under section 62 of the IRC.
Therefore, do not expect a gift and estate tax return to be completed by the Executrix with taxes already paid, as you will need to include the income in you tax return.
Good Luck.
TV
Answered on 12/03/09, 10:55 pm
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