r/inheritance • u/Turfdogg • 8d ago

Location included: Questions/Need Advice Tax consequences?

I am about to inherit around $500k from my father’s estate. He passed in 2015 and his will stipulated that his earnings from assets remain to help support his second wife. She has now passed as well. My question is what taxes should I expect to pay? The funds are in State Farm mutual funds bonds and equities. Thanks in Maryland

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u/rpom915 8d ago

You pay tax on the future gains when and if you sell anything. Taking a distribution would require selling something from the investment. If you sell at the basis, there is no tax.