Holy sh*t! Pleasant surprise?

How much after the inheritance tax?

 

My uncle's family experienced similar. Loved their neighbor, and apparently she either had no one or was estranged. She committed suicide and left them her entire estate.

They took the leather chair in which she shot herself to the dump because they couldn't bear to look at it. A guy saw them throwing it out and asked for it. My uncle told them a woman had shot herself in it but the guy was like, hey, I didn't know her and it's a fantastic chair, so he took it.

I've no idea how much my uncle's family got out of it, but it was easily hundreds of thousands.

 

Last year I stumbled across an article about the issues and challenges for elderly people without any family, and often any friends, nearby who are trying to stay in their homes as they age. Issues range from the very practical, like running errands or changing a lightbulb when one can't get on a ladder any more, to the very personal, related to health, limited finances and social isolation.

I've gotten involved with some "elder orphan" groups and shared your story, Killick. The responses included:

"While he may not feel he did much, we never know how our presence and actions affect others. Sometimes the simplest things bring the greatest joy." "Send this young man our love and tell him to receive her thanks with the grace with which she gave it." "Enjoy it with her blessing." "His humility is charming. Gifts are not earned but given freely." "Say thank you and deposit the check." "It's not about what he thinks he should have done to earn it. It is the value she placed on the small kindness shown to her."

How did you meet your neighbor and start helping her?

 

I lived in a condo. Me on the third floor, Barb on the first. For a long time, we were just condo friends who nodded in passing, spoke occasionally. Before she was sick, I'd get her mail and feed her birds when she went on vacation. After she fell ill, she asked if I'd mind doing it even though she was home because it was hard for her to get around. As her cancer progressed, she also needed occasional grocery runs, other errands or just someone to sit and talk with her for a while. Was happy to help, really.

 

@Killick, thanks for sharing this wonderful story. You deserve every cent of it, and to enjoy it as you see fit. There really is no downside to being nice, and this is a great example why...

 

Definitely have to give some up, no? There is an estate/inheritance tax.

 

I imagine there is, especially since I'm not related. (In some states, I believe, there's a scale on which direct relatives pay less and the more tenuous the connection, the higher the tax rate.) Really haven't even gotten that far yet. Still take the check out every once in a while and just stare at it, dumbfounded.

 

I'd definitely talk to a CPA pronto (like tomorrrow) and figure out your best strategy for putting the max amount to the most effective use.

A charitable donation might be one way to go, but it might depend on your own tax situation (i.e., is your mom a dependent, are you her legal guardian? Perhaps if so, money earmarked for her support might be in a better tax situation.)

I'd definitely talk with somebody who really knows what they're talking about, not just whizzing into the wind.

 

Almost no chance you'll have to pay a penny.

Federal income tax? Nope. Inherited money is not considered income.

Estate tax? Not unless the value of the estate was in excess of $5 million+. And even if it was, that is all figured out and handled BEFORE any money gets sent to beneficiaries.

Inheritance tax? Not unless you live in Iowa, Kentucky, Maryland, Nebraska, New Jersey or Pennsylvania.

 

I'd take a photo of the check, then deposit it.

But the money really isn't the big picture here. What's important is the time well spent in helping your neighbor in time of need. That was priceless to both of you.