• We’re currently investigating an issue related to the forum theme and styling that is impacting page layout and visual formatting. The problem has been identified, and we are actively working on a resolution. There is no impact to user data or functionality, this is strictly a front-end display issue. We’ll post an update once the fix has been deployed. Thanks for your patience while we get this sorted.

Unexpected inheritance...

Ichinisan

Ichinisan

Lifer
Between my twin brother and I, we are getting about $24,000 inheritance from a family member. This could not have come at a better time for us. We are getting income tax refunds, economic stimulus checks, and an unexpected $2,100 from my employer...it's like a "perfect storm" of financial relief!

Paying off credit and other debts between my brother, mother, and I would immediately use it all up. It would probably make better sense to turn the cash into a profitable venture, so that the profits would provide financial relief, and eventually benefit.

My brother and I do not want our mother to know that we have received the money. Based on her past behavior, she *will* find a way to waste it. She was specifically excluded from the inheritance for this reason.

My family tells me that I should create a new bank account; one that she would not have any access to.

My main question is this: 1) Because we may want to start some kind of business venture, shouldn't we get some kind of business license or tax ID and open an account in the business name?

Also:

2) Is inheritance taxed?
3) Is it fraudulent to pass inheritance directly to a business to avoid excessive taxes?
4) If all is OK, would I have to ask that the executor of the will send a different check with the business name specified instead of my own?

With the combined technical skills of my brother and me, starting a business venture should be easy if we find someone competent to handle most of the business side of things.

Any advice is appreciated!
 
No offense but from reading your post I would strongly advise against going into a "business venture", and rather pay off your debts.
 
Originally posted by: tfinch2
You mean you didn't get left 8 apartment complexes in Beverly Hills?
Click to expand...

I'm sure this is a reference to something in pop culture...an email scam, perhaps?
 
pay off the debt. That will provide immediate financial relief. A business venture may take years with a small chance of success.
 
Originally posted by: rsd
No offense but from reading your post I would strongly advise against going into a "business venture", and rather pay off your debts.
Click to expand...

or see a financial adviser and invest it in something. im fairly sure inheritance is taxed fairly heavily as well. either way, it will be taxed as income wont it?
 
Use it to buy 24,000 $1 scratch cards or make that 23,999 $1 scratch cards and 4 quarters to scratch the with. That or pay the debt off.
 
1. yes you pay tax make sure it is taken care of first

2. Why does your mom have access to YOUR account

3. How old are you? see Q-2

4. Do not spend it, pay off you CC first and then cancel them and cut them up.

5. Are you 26 and live at home with 3 weeks of the hosue to yourself and don;t know what to do?
 
Originally posted by: MagnusTheBrewer
The executor of the estate will pay the taxes before you ever get your hands on the inheritance.
Click to expand...

Only if the estate is over the $2M Unified credit and your state has an inheritance tax..
 
Originally posted by: SpunkyJones
If you have credit card debt, get rid of that now. You'll thank yourself later.
Click to expand...

I agree with everyone here. pay off the debt, whatever's left over you can use for hookers.
 
Originally posted by: Ichinisan

Paying off credit and other debts between my brother, mother, and I would immediately use it all up. It would probably make better sense to turn the cash into a profitable venture, so that the profits would provide financial relief, and eventually benefit.
Click to expand...

NO NO NO NO NO.


No.


No.




Pay off your debt.



Do *not* spend the money on a "profitable venture".



If you really want to do a "profitable venture" pay off your debt and then get a loan for the "profitable venture" afterwards.

If you can't get approved for the loan, take that as a sign that it was never meant to happen.
 
How old are you? If you are over 18, how would your mom get hold of your money to waste it?

And yes, by all means pay off the credit card debt.
 
Originally posted by: Marlin1975
4. Do not spend it, pay off you CC first and then cancel them and cut them up.
Click to expand...


Do not cancel your credit cards unless they have annual fees. There is no reason to, it's more harm than good. Cut them up if you lack self control, but canceling them is just bad advice.
 
Your questions...

1. Not at this time. You don't do that just because you *might* start a business later.
2. Maybe. You need a tax advisor to tell you.
3. Makes no sense to try to convert the money to a business name. Keep it in your own name. If you want to start a business later, then invest the money in the business at that time.
4. See answer to #3.

Open a bank account with just your name on it and put the money there. It can sit there until you choose to do something else with it.
 
Originally posted by: Marlin1975
1. yes you pay tax make sure it is taken care of first

2. Why does your mom have access to YOUR account

3. How old are you? see Q-2

4. Do not spend it, pay off you CC first and then cancel them and cut them up.

5. Are you 26 and live at home with 3 weeks of the hosue to yourself and don;t know what to do?
Click to expand...

My brother and I are turing 28 later this year. We are both extremely busy people, and our technical skills are always in great demand from everyone we associate with. We don't have time to bother with most things regarding finances, and it comes back to bite us sometimes. If our mother didn't have access to our accounts, a lot more would slip by us. I know it sounds strange, but we have dependency issues.

Once we can relieve some of our own responsibilities, we should have time to keep track of our own finances.

I have a loft apartment. My brother usually stays with me. My mother has her own place.
 
If you're going to waste the money on a "profitable venture" instead of paying off your debt, just give the money to your mother. Virtually the same thing.
 
You must log in or register to reply here.

TRENDING THREADS

Back
Top