Legal Question in Wills and Trusts in Texas

My sister passed away leaving her estate to me, knowing that I would make sure her 2 sons received it. Can I not accept the money and defer it to them? My concern is, I do not want to pay taxes on the money since I am giving it all to them. It is about 75,000 to each son. They are 21 and 24. I live in Colorado and the boys live in Texas

Asked on 9/15/10, 11:54 am

2 Answers from Attorneys

Arthur Geffen Arthur H. Geffen, P.C.

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You cannot just give the money away without incurring gift tax consequences. If your sister passed fairly recently and there is a will, you could disclaim your inheritance. That has the effect of making it as though you died before your sister. If her sons are her only two heirs, they would get the money. You should talk to a lawyer ASAP as this is kind of complicated and must be done timely.

Answered on 9/20/10, 12:08 pm

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James N. Willi Willi Law Firm, P.C.

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Inherited money is not income. Perhaps your sister intended for you to put the money into a trust and distribute the money to them over a period of years.

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Answered on 9/20/10, 12:10 pm

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