died with no will

[amber82]

My great aunt died in December with no will. I have been contacted by her step-daughter and informed that I am one of six heirs under Vermonts law. She has three siblings. My grand-father is one and since he has passed the proceeds go to my father and his brother. Since my father is passed the money will go to his three daughters. I am one of his daughters. How will the money be divided? The total is 400,000. Also, will my portion be taxed in Vermont before I recieve it? Also, will I have to pay taxes on the money if I live in Texas? Thank-you for your time!amberbelski@aol.com Also, the step-daughter has applied to be administrator of the estate, will she recive any of the proceeds?

 

[dee_dub]

My great aunt died in December with no will. I have been contacted by her step-daughter and informed that I am one of six heirs under Vermonts law. She has three siblings. My grand-father is one and since he has passed the proceeds go to my father and his brother. Since my father is passed the money will go to his three daughters. I am one of his daughters. How will the money be divided? The total is 400,000.

I assume your great aunt left no surviving spouse or blood children and was not survived by her parents.

Under Vermont's intestacy laws, the $400,000 will be divided evenly between her siblings. If a sibling is deceased, that share will pass to their issue. So: your grandfather would have received 1/3 of the total. Since he is deceased, it passes to his issue equally - your father and his brother. Your father would thus have received 1/2 of your grandfather's amount. Since he is deceased, his share passes to you and your sisters equally, 1/3 each. As I calculate it, you and your sisters each get 1/3 of 1/2 of 1/3 of $400,000, or $22,222.22.

Also, will my portion be taxed in Vermont before I recieve it?

My understanding is that Vermont does not impose state inheritance tax, but your inheritance would be subject to federal inheritance tax. This tax would be paid by the executor before you receive the inheritance.

Usually you do not have to pay income tax on the inheritance.

Also, the step-daughter has applied to be administrator of the estate, will she recive any of the proceeds?

I don't believe step-children are beneficiaries under Vermont's intestacy laws. She would almost certainly be eligible to be reasonably compensated for acting as administrator.

 

[amber82]

Thank-you again dee_dub! A couple of questions for you. I live in Texas, will I have to pay any kind of taxes toward the end of the year? I would like to know so I can save some of the money. Also, the step-daughter was officially appointed administrator on Feb 3. When will I recieve my share? About how long will it take? Who is going to be writing the checks? Im recieve food stamps and medicade for my son-will recieving this money affect that? Will I owe the government if they find out?

 

[bbtl2009]

Let's assume that he saved the $400,000 from working. He put away some money from each check. Would it get taxed when it is divided? I would assume the divided money was a gift. Does the government tax on gifts?