Which taxes are being referred to? If it is the estate of the deceased against whom the tax is levied, then the tax must be paid out of the proceeds of the estate (if there are any), otherwise the inheritor must pay it. If the inheritor is responsible for paying the taxes then.... the answer is obvious. Check the local or federal tax authorities.
AnswerThis is a complicated area so the following information is general only. You should speak with a tax expert and a representative from the insurance company before you make any decisions regarding this inheritance.The value of the annuity at the date of death is included in the estate for tax purposes. The estate would pay any inheritance tax.
Once an inherited annuity is distributed to the beneficiary by the insurance company, either a lump sum distribution or a new annuity with you as the owner, ordinary income taxwill become due on the growth of the annuity from the time the annuitant/decedent made the initial investment. Most annuities are tax deferred. When they are inherited, you inherit all the tax liability that was deferred over the years by the owner of the annuity.
You should discuss the inheritance with the insurance company. It can explain your options and ways you can minimize your tax obligations. Any changes you make or any distribution will generate a 1099-R.
No, in Australia, America and most of Europe there are certain taxes that affect inherited annuities.
When are income taxes applied to the interest earned by business owned annuities
No, fixed annuities are generally tax-deferred. You will pay taxes on it when you remove the money from the annuity. Fixed annuities are not taxed so no you would not have to. You can find out more facts about how they work by visiting www.moneymanagment.info.
is there an age limit on who pays fica taxes
50 % of wage earners pay no taxes!!
No, in Australia, America and most of Europe there are certain taxes that affect inherited annuities.
In many jurisdictions the estate pays inheritance tax.
When are income taxes applied to the interest earned by business owned annuities
When are income taxes applied to the interest earned by business owned annuities
No, fixed annuities are generally tax-deferred. You will pay taxes on it when you remove the money from the annuity. Fixed annuities are not taxed so no you would not have to. You can find out more facts about how they work by visiting www.moneymanagment.info.
is there an age limit on who pays fica taxes
50 % of wage earners pay no taxes!!
50 % of wage earners pay no taxes!!
Everybody.
It is paid for in taxes.
your estate.
we do