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Old 05-09-2015, 10:12 AM
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Estate Beneficiary

My mother's estate is not settled after 4 years, there are 3 heirs, sister is executrix just not wanting to settle the estate. Can I pass by beneficiary right's to my children? If so what tax implications would they have? Could a trust be set up for this?



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Old 05-09-2015, 02:06 PM
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My mother's estate is not settled after 4 years, there are 3 heirs, sister is executrix just not wanting to settle the estate. Can I pass by beneficiary right's to my children?======== >..You, as a heir named in a will, have the right to waive / disclaim an inheritance by drawing up and signing a document that ends your legal right to claim the assets left to you in the will.You may waive property left to them in a will for any reason.In general, the most common is avoidance of property taxes and other costs associated with inherited real estate.OR the inheritance, when it generates income, may also affect heir’s income tax bracket and raise the percentage of income they would have to pay the IRS, so the heir doesn’t it want the inheritance, either.The disclaimer must be in writing and the person disclaiming the bequest must file the document in the court having jurisdiction over the estate. The disclaimer must also be sent to the executor of the will, who has responsibility for distributing assets according to the will's instructions; So for more accurate info, you need to contact the dept of rev of your state; your State law sets a deadline with respect to any waiver of inheritance.
Note; after you, as an heir, file a disclaimer, the law returns the inheritance to the estate of the deceased. You may not file a waiver in favor of any other heir, or request that the property pass to someone not mentioned in the will. Instead, the executrix has responsibility for disposing of the property according to instructions in the will, if there are any instructions with respect to disclaimed property. If there are not, the executrix has discretion in the matter and may transfer the property to another heir, to a person not mentioned in the will, or to the state treasury. The probate court has authority in the matter and must approve any such transfer of property.

If so what tax implications would they have?=========>>>>I guess You should contact the applicable tax agency, Dept of Rev of your state I mean, located in your state for further guidance. State laws change frequently .For example, in Oregon state, estates with a gross value that exceeds $1M must file an Oregon estate tax return even if no Oregon estate tax will be due as a result of applicable deductions and exemptions However, in general, for some state residents, an estate may be subject to the state estate/inheritance tax(or both in the case of PA state I guess) or estate tax if the total gross estate exceeds $1M( the estate must pay taxnot the heir).So yiu need to check it with your state tax agency.

Could a trust be set up for this?=============>>No trust is needed; a trust allows you to dictate how your money is to be managed and distributed, and by whom, during your lifetime, and after death. You may wish to setup a trust for many reasons, including avoiding taxes or probate, protecting assets from creditors, providing for a minor child, or ensuring that a loved one can inherit without losing government assistance. Whatever the reason for setting up a trust, the process is the same.You cannot waive your rights to inherit from your mother in advance. Unless you do want to inherit, you can deliver a written statement which completely / irrevocably waives your rights in the inherited property to the executrix of your mother's estate within 9 months of her death. If you want to disclaim, you cannot make any use of your mother's property after her death and before you disclaim.



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