This is all new to me, so looking for some basic "quick hits" type of advice when dealing with an inheritance.
The facts: A relative passed away two months ago leaving a modest estate behind - if I had to guess the total estate is worth over 500K, but less than $1M - A modest paid-off house in Massachusetts, a small amount of 'after-tax' money and 'stuff', and a larger (but still modest) amount of money in a combination of retirement plans. The estate is to be divided 6 ways to the 6 heirs equally - so nobody is really going to have their lives changed much by this.
What I am looking for, what are the basic things one needs to know? There is no inheritance tax in effect currently, correct? but I assume there are lots of things that need to know in order to make good decisions (i.e. do retirement accounts get cashed out and the distributed, or do you actually inherit 1/6th of a stock portfolio, do you inherit an IRA or does the IRA pay get cashed out, taxes paid and then you inherit 'after-tax' money etc. If there is an option to 'cash out' the IRA and pay taxes due, does each heir decide for themselves, or can some folks take their 1/6 IRA and other folks can take theirs as after tax money?
I am not an executor, two other heirs are (one of whom is very trustworthy), but neither of which has much financial credentials.
I want to educate myself, and be available to answer questions if asked, but have no intentions of forcing myself into a situation where I have no legal standing (not being an executor), but if there are things that I can decide for myself, I want to have the knowledge to decide wisely.
Other very basic questions that I don't understand: do you actually inherit 1/6 of a house? or do the executors have the power to force a sale and distribute the proceeds? What happens if 5/6 want to keep it, but 1/6 does not - can the others be forced to buy the 1/6 out? Who calls the shots? Does the majority rule or do the executors rule? Can you actually sell 1/6th of a house to an outside party?
I'll probably have some followup questions, but right now I am just trying to understand the "big picture" on how things work.
The facts: A relative passed away two months ago leaving a modest estate behind - if I had to guess the total estate is worth over 500K, but less than $1M - A modest paid-off house in Massachusetts, a small amount of 'after-tax' money and 'stuff', and a larger (but still modest) amount of money in a combination of retirement plans. The estate is to be divided 6 ways to the 6 heirs equally - so nobody is really going to have their lives changed much by this.
What I am looking for, what are the basic things one needs to know? There is no inheritance tax in effect currently, correct? but I assume there are lots of things that need to know in order to make good decisions (i.e. do retirement accounts get cashed out and the distributed, or do you actually inherit 1/6th of a stock portfolio, do you inherit an IRA or does the IRA pay get cashed out, taxes paid and then you inherit 'after-tax' money etc. If there is an option to 'cash out' the IRA and pay taxes due, does each heir decide for themselves, or can some folks take their 1/6 IRA and other folks can take theirs as after tax money?
I am not an executor, two other heirs are (one of whom is very trustworthy), but neither of which has much financial credentials.
I want to educate myself, and be available to answer questions if asked, but have no intentions of forcing myself into a situation where I have no legal standing (not being an executor), but if there are things that I can decide for myself, I want to have the knowledge to decide wisely.
Other very basic questions that I don't understand: do you actually inherit 1/6 of a house? or do the executors have the power to force a sale and distribute the proceeds? What happens if 5/6 want to keep it, but 1/6 does not - can the others be forced to buy the 1/6 out? Who calls the shots? Does the majority rule or do the executors rule? Can you actually sell 1/6th of a house to an outside party?
I'll probably have some followup questions, but right now I am just trying to understand the "big picture" on how things work.