When she went to wrap up his finances her dads bank, (while she was there with the lawyer inventorying the safe deposit box.) unprompted handed her a cashiers check for 49000. Telling her she was the beneficiary on the IRA. It’s a really small town her dad lived in and all the paperwork for her fathers death was done fast. He’d died suddenly. Anyway since my wife and a half brother were his only child. (Half brother that her died disowned and never spoke to so my wife has never met him.) and he failed to make a will in time. The lawyer said all of his properties and vehicles would be liquidated and split between the two children. My wife did all the ground work getting the deeds and titles together. But the lawyer and the bank told her that the 49k was except from this two child split, because the names beneficiary (my wife) on the IRA superseded the rest of the properties that weren’t named in a will.
It’s all really confusing to me.
Anyway my main question since we’ve never had that kind of money, is what is the best thing to do to avoid being highly taxed on it. From what I’ve read IRA beneficiary doesn’t count as inheritance and isn’t except from taxes. We are renters and want to eventually buy a house, so we don’t want to throw it into an account we can’t touch for five years. And also we want to use a little to get out of our credit card debt. (2000 dollars) and my wife’s car is in its last legs. We were thinking instead of buying a better used car outright to put a hearty down payment on it and pay it off over six months to help build our credit back up.
And also after all is said and done in the next few months she’ll be receiving a little more money after the division of items between her and her brother.
Submitted April 19, 2019 at 07:00AM by itsameitsayou http://bit.ly/2Gmfn0V
