seraphim
Thinks s/he gets paid by the post
- Joined
- Mar 6, 2012
- Messages
- 1,555
DW is in the midst of getting an inheritance which includes IRAs, annuities and stocks/bonds (unknown composition at the moment). She may have to sell some assets to pay the estate tax. It is also unknown which of the assets may be tax deferred and/or which ones may be taxable.
1. If assets are in a tax-deferred account, would 'income tax' have to be paid if assets were sold prior to distribution to pay the estate tax?
2. If the tax status of the different assets were the same, which would you recommend using to pay the tax - stocks, bonds, annuities or IRA distribution (DW will have to begin IRA distibutions immediately, we've been advised).
I realize there are unanswered questions about the accounts which will affect the answers, but I'm sure a discussion will be educational for me. All the past discussions have been.
Thanks.
1. If assets are in a tax-deferred account, would 'income tax' have to be paid if assets were sold prior to distribution to pay the estate tax?
2. If the tax status of the different assets were the same, which would you recommend using to pay the tax - stocks, bonds, annuities or IRA distribution (DW will have to begin IRA distibutions immediately, we've been advised).
I realize there are unanswered questions about the accounts which will affect the answers, but I'm sure a discussion will be educational for me. All the past discussions have been.
Thanks.