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How are cash disbursements from a deceased's estate taxed?

In: Probate, Debt Responsibility, Income Taxes [Edit categories]

Answer:

Generally, they are not. If any of the money includes interest, dividends, or capital gains earned after death, that income may be taxable to the beneficiaries when distributed.

If you inherit a retirement account, such as an IRA, distributions therefrom will be at least partially taxable unless transferred into an IRA for the beneficiary. The rules are complex, and will not be addressed here.

First answer by Jancpa. Last edit by Jancpa. Contributor trust: 79 [recommend contributor ]. Question popularity: 5 [recommend question].

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