Legal Question in Wills and Trusts in Texas
Taxable inheritance
Is money that is inherited taxable? I will be receiving money from my father but I in turn will be opening 2 savings account in my childrens name. If taxable will I still have to pay taxes on it even though I am not going to use the money for myself. It will be sent in my name.
Asked on 8/12/03, 5:34 pm
1 Answer from Attorneys
Peter Bradie
Bradie, Bradie & Bradie
Re: Taxable inheritance
If the inheritance is greater that $1.25 MM, the estate has to pay federal inheritance taxes. The money you receive is not income and not taxes as income.
Remember, you and your wife can each make an $11,000 gift to each child, each year, without paying gift tax. If you receive the money in your name, you can pool it in a joint account so each of you may make gifts to your children.
Answered on 8/12/03, 5:54 pm
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