Inheritance question

**bustedparts** · 03-18-2011, 08:12 AM

Originally Posted by Lora88

Probably gonna get slammed here but I have to say this you will owe no federal in come tax on that money State tax depends on where you live some states have one some dont depends on the state where the person died and they have an exempt amount regardless there is a chart on the internet just google estate tax and and its gives info on estate tax inheritance tax for each state I dont think you will owe anything on that amount personally. That said an inheritance is not subject to distribution in the event of a divorce unless it is co mingled with other martial funds I know you said your income was low and you are probably not un happily married however when you receive the money keep it in your name only and wait awhile till you decide what to do with it take it from me I have seen alot in my years dont mean to be cyncial but life can be funny Ok everyone flame away

you make a good point. money can change people, some for the better and some for the worse.

**MaryCarney** · 03-18-2011, 03:41 PM

Flame? For trying to save someone from potential harm? No way - you keep sharing what you know!

**Ramona** · 03-18-2011, 04:22 PM

Originally Posted by Lora88

Probably gonna get slammed here but I have to say this you will owe no federal in come tax on that money State tax depends on where you live some states have one some dont depends on the state where the person died and they have an exempt amount regardless there is a chart on the internet just google estate tax and and its gives info on estate tax inheritance tax for each state I dont think you will owe anything on that amount personally. That said an inheritance is not subject to distribution in the event of a divorce unless it is co mingled with other martial funds I know you said your income was low and you are probably not un happily married however when you receive the money keep it in your name only and wait awhile till you decide what to do with it take it from me I have seen alot in my years dont mean to be cyncial but life can be funny Ok everyone flame away

This is what's great about a forum. So many thoughts and suggestions. Lora88, I think you've got a very good idea there.
It never dawned on me.

**my4littlebuffaloes** · 03-22-2011, 12:38 PM

I would max out a Roth IRA for both you and your dh for this year. Then put the rest into savings. sit on it awhile, let it sink in, let your dh finish school and find a job, then think about buying a house. You will have a very nice down payment and emergency fund for the house, as well as a nice start on retirement.

**Nishu** · 03-22-2011, 12:48 PM

Originally Posted by MaryCarney

What's he going to school for???

Anyone who has ever come to this board: I'm going to school.

MaryCarney: For what? Will you make money with that degree?

hahaha

**Greebo** · 03-22-2011, 12:50 PM

Originally Posted by Nishu

Anyone who has ever come to this board: I'm going to school.

MaryCarney: For what? Will you make money with that degree?

hahaha

Greebo: I hope you're not taking out student loans for that!!!

**khaski** · 03-22-2011, 02:28 PM

Given your current financial stats, I would NOT use it as a down payment on a home- your income will not comfortably support a mortgage, and you don't have enough in savings BUT....max out both IRAs, pay off your debts, put a bit in an 'emergency fund', and a large chunk into your 'buy a house' fund. Before you buy a house, you need a sizeable down payment (we're aiming for 30% for our next house) AND at least 6 months cost of living emergency fund to be safe.