Guest tsmith69 Posted July 4, 2000 Posted July 4, 2000 A man dies is Sept 99. His estate is valued at $975,000. Included is an annuity valued @575,000 which gained $275,000 since started and a IRA worth $125,000. The estate taxes of about $77,000 are paid. I assume he now has to pay income tax on the $275,000 annuity gain and then IRA of $125,000 for a total of $400,000. that means a tax bite of $160,000. Question? Can you distribute the 00,000 to the heirs ( who are in a lower tax bracket)and let them pay the tax as income for this year?
BPickerCPA Posted July 6, 2000 Posted July 6, 2000 Depending on the beneficiary designations, the estate may have no right to this income. If for some reason of poor planning it does, the estate can always make a distribution. Don't forget the IRD deduction. ------------------ Barry Picker, CPA/PFS, CFP New York, NY www.BPickerCPA.com Barry Picker, CPA/PFS, CFP New York, NY www.BPickerCPA.com
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