Must My Beneficiaries Pay Taxes on the Last Will and Testament Assets I Bestow Upon My Death?

Whether or not a beneficiary listed in a Last Will and Testament pays taxes on the assets provided in that Will depends on whether the decedent\’s estate is of sufficient value that estate taxes (be they federal, state or local) will be levied upon the transfer of the property.

The short answer is, it depends upon the value of the estate.

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How Do the Children Get Proceeds from the Sale of our Deceased Father’s House from a Stepmother Who Was Only to Live There?

This question addresses a highly complicated legal situation.

In retrospect, the best way to effectuate the desires of the father in this situation would have been to change the property’s Deed to grant a ‘life estate’ to the stepmother, with a remainder interest to the children. That way, the mother was free to reside in the home for the duration of her life and upon her death the ownership would have passed to the children.

But even in the probate of the estate after the father’s death, such a situation can be created. If the father used a Will rather than a Deed to convey his wishes, the probate process itself can be utilized to create the same ‘life estate’ result, with a life interest being transferred from the probate estate to the stepmother while she is alive and a remainder interest to the children after she passes.

Either way, both of these process can be complicated and the use of a qualified attorney is highly recommended.

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