Ok, here I go... My mom passed away in Washington State. She had a trust fund that is going to be paid to me in cash. I live in Colorado and the executor is in Utah. Where does the tax liability lie? The executor is my aunt who also has an interest in the trust and I am worried she might have pinched in the past and she has me completely freaked out now on how much taxes will be taken before I even see the money. Should I be worried?
Thank you so much for taking the time to answer. :eek:
Oh, yeah and one last thing it should be around $150,000. Is that even taxable?

There is no tax on inheritances. That when you get any money or property, it is not taxable in your stands.

There is estate tax, but for 2009, the exemption amount is 3.5 million. Estates under 3.5 million do not pay any tax.

Executor is responsible to pay all the creditor and government taxes before distributing the estate.


Your U.S. Tax Return: Tax on Inheritances

The Washington state inheritance and state estate taxes apply, as well as Colorado inheritance taxes.

I suspect there are NO taxes due from either state, but a phone call to each state tax departments will confirm that.