My wife is the care giver for a 93 year old woman that is expected to pass in the next few days. She has no family and left everything to my wife, which consists of just her bank account (about $100k in savings). What obligation, if any, does my wife have to file any kind of tax return for the lady or herself for inheriting the money. The lady only has income from SSA and NC state teachers retirement. She is in an assisted living facility.
Your wife inherits the property tax free. And she gets stepped up basis for any assets. When she sells her cost basis is market value on the deceased date of death. No taxes to report until she sells assets or interest/dividends after date of death.
The executor of the estate files final tax returns for the deceased. But it can be more complicated if she has a trust. Trust may continue after her death.
Thanks. The lady has no assets except for her savings. She has not filed tax returns in years. Does my wife still need to file one for her when she passes?
Both Social Security and pension income are taxable. Consult the IRS on the minimums below which filing is not required. Easy enough to fill out the forms to see if income tax is due.