Income Taxes
My father's estate is getting ready to be distributed to the heirs. Is the money recieved from the estate considered income and subject to federal income tax or any other tax? Most of the money in the estate is from insurance policies but some is from his pension at work. They paid the insurance to the estate because the beneficiary was his wife who died in the same accident.
1 Answer from Attorneys
Re: Income Taxes
Usually, the distribution of the estate assets is not taxable income. Certainly, the insurance proceeds are not suject to income tax. Interest earned by the estate, as well as income, pension and IRA proceeds are typically subject to income tax by the recipient.
You should check this with your estate attorney.
I hope this helps!
Ron Cappuccio
http://www.saveyourestate.com
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