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    klarson's Avatar
    klarson Posts: 5, Reputation: 1
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    #1

    Oct 17, 2007, 02:13 PM
    Inheritance tax for minors
    My sons, at the time ages 6 and 8, received a small inheritance from their grandfather. It was spelled out in a trust for them and was disbursed to them roughly 2 years after his death. Are they subject to taxes on this amount? Do I have to file anything for them with either the state or the federal government? Or are they exempt because of their age, and the fact that it was executed as a trust?
    jillnovac's Avatar
    jillnovac Posts: 1, Reputation: 1
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    #2

    Oct 17, 2007, 03:26 PM
    No you do not need to report this. There is no federal inheirtance tax.
    I am ex-IRS
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
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    #3

    Oct 18, 2007, 02:29 PM
    Agreed; the amont in question is so small as to NOT be subject to federal estate or state inheritance taxes.
    klarson's Avatar
    klarson Posts: 5, Reputation: 1
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    #4

    Oct 18, 2007, 03:00 PM
    Thanks for the help. I gather from the response, however, that the amount might determine whether anything needs to be filed? Is this correct?
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
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    #5

    Oct 18, 2007, 05:50 PM
    Yes, the amount matters, but only if the amount exceeds about $1 MILLION.

    If the amount being transferred was in that range, you would NOT be asking for advice on this forum; you would be seeking advice from an estate planner, an estate attorney, a CPA, or all three!
    klarson's Avatar
    klarson Posts: 5, Reputation: 1
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    #6

    Oct 18, 2007, 08:41 PM
    Thanks! And, no, it is oh so much smaller than a million dollars - so I guess I don't have to do anything except get a start on their college saving fund! Thanks for all your help!
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
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    #7

    Oct 19, 2007, 03:01 PM
    Glad to help!
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