Will there be tax on decedents estate or for beneficiaries?

There are 4 siblings that are beneficiaries to their mothers estate through a trust. She passed away this year. There is less than $300,000 in bank accounts ($30,ooo from 2 annuitys cashed in in the trusts name). No property or anything else. Will there be any tax on the estate or the beneficiaries?

Corona, CA -

Attorney Answers (3)

Gregory Paul Benton

Gregory Paul Benton

Probate Attorney - Glendora, CA
Answered

Probably no taxes due on the estate or to the beneficiaries, but the successor trustee also needs to file income tax returns for the final year during which the decedent lived.

Venar Raad Ayar

Venar Raad Ayar

Tax Lawyer - Southfield, MI
Answered

Assuming the decedent didn't give away at least $4.7MM in tax free gifts during her lifetime, then there will be no tax due

As with all advice posted on a public forum, my advice is not to be relied upon. Given the limited set of facts... more
Paul Rutledge Durr III

Paul Rutledge Durr III

Estate Planning Attorney - Denver, CO
Answered

There will be income tax on the annuity payments, its due from the recipient (on the amount in excess of the the cost of the annuity). Mr Ayar correctly pointed out that there is no estate tax unless taxable gifts and the net value of the estate total in excess of 5.25mm dollars.

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