Excluded from Gross Estate
If an asset is excluded from a decendent’s gross estate does that mean the asset is non-taxable to the beneficiary?
They are not directly related. For example, if a Roth IRA is inherited by a trust, neither the trust or the beneficiary of the trust will owe income taxes, but it a traditional IRA is inherited by a trust, income taxes on distributions will be due from either the trust or the beneficiary of the trust.
Permalink Submitted by Alan - IRA critic on Tue, 2022-11-01 15:05
Are you asking about income taxes or estate taxes?