Question Concerning Inheritance Tax?

Question

I know someone whose son was living in a nursing home, he was on Disability and had direct deposit .
The nursing home would take so much of his money to pay for his stay and the remainder stayed in his banking acct. Now this young man had his mother on his banking acct. because she had to write the check to the nursing home. Well, this past June the young man passed away, and the money that was left in his banking acct. is what was used to pay for his funeral. Recently the Mother received notice about having to an Inheritance tax on the money from her son's acct. The same money that was used to pay for the funeral. The question is this: Even though her name was on her son's acct to pay his nursing home bill; the money that was left, is that really considered an "Inheritance" for her and does she really have to pay this Inheritance tax ? She doesn't think she should have to!! HELP !!

Answer 1

There is no inheritance tax for 2010 regardless of the size of the estate. There may be one at the state level for estates over $1 million. From your description this was a small estate left in a joint account.



This sounds like a possible scam.

Answer 2

What inheritance tax? If you're not smart enough to know the difference between an "estate tax" (taxed to the estate of a dead person) and an "inheritance tax" (taxed to those receiving the estate), and your so-called information source doesn't tell you, either, aren't you pretty much an idiot to begin with? Why should we trust your numbers? Here's the real information: On January 1, 2011, the federal ESTATE TAX will be resurrected by democrats at a top rate of 54% and will apply to any estate valued at $1 million or more. On the same day, the ESTATE TAX will be resurrected in some 30 states because their state-level laws are tied to the federal law. About 20% of dying people will be affected because the states have lower thresholds.

Answer 3

First there has to be something to collect the inheritance tax on; knowing what funerals cost in the here and now there was probably nothing left. She should speak to an attorney and beware of a possible scam regarding this. People will try anything once.

Answer 4

Was the letter from the Social Security Administration? If the SSA was paying for his expenses with SSI money, the SSA will demand all excess funds to be returned to them.



Your state may have a program to pay for part of the funeral expenses, eg $1500.

Answer 5

She should take the information that she has received in hand and contact the IRS and the state or local taxing authorities in her area and ask them to see if they can give her any assistance with this matter and possibly explain to her what may be going on with this matter.

Answer 6

There is no federal inheritance tax, but there are some few state inheritance taxes.

Answer 7

Who did she get the notice from--IRS? There is an estate tax exclusion. Sounds like she will have to talk with a tax professional.

Answer 8

it was probably the state she lives in, the inheritance is not taxable by IRS

and since this was a joint account they both had access to it was hardly inheritance