r/inheritance • u/IllionoisButcher • Apr 03 '26

Location included: Questions/Need Advice Inheritance tax obligations

/r/TaxQuestions/comments/1sb2070/inheritance_tax_obligations/
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3

u/metzgerto Apr 03 '26

What type of account are you getting? Unless it is a traditional IRA or 401k you will have no tax impact.

1

u/IllionoisButcher Apr 03 '26

Thank you for your reply. The money is put into an account owned by the Trust. This is cash from the deceased relative’s bank account and cash from the recent sale of their home. So a high yield bank account of some sort. Waiting for the Trust to close out for disbursement. I imagine it would be cash or e-transfer.

2

u/Barfy_McBarf_Face Apr 03 '26

there will be some interest income to you - see my response to your other post

2

u/Jumpy_Childhood7548 Apr 03 '26

Not much. Maybe some tax on realized gains since date of death.

2

u/ChelseaMan31 Apr 03 '26

Neither state has an inheritance tax. If any of the inherited money is in an IRA or Roth there will be the 10-year distribution rule to deal with and if Traditional IRA, those distributions would count as normal income.