Why is a W-9 Required Before the Executor Will Send an Inheritance Check? I am under the impression that there is no (U.S.) federal income tax. See, for example, the beginning of the second paragraph under Understanding Inheritance Taxes in https://www.investopedia.com/terms/i/inheritancetax.asp If that is true, then why are beneficiaries being required to fill out a W-9 form before the executor sends will send an inheritance check? Is this standard practice in the U.S.? Someone I know has been required to do this even though the amount of the distribution is not extraordinarily large---somewhere between $20,000 and $25,000?
The tax in question that is a concern is probably not an estate tax due in connection with an inheritance tax, it is probably the federal income tax that applies to the beneficiary in some way. Typically, if there is a specific devise (e.g. I hereby leave you my nephew $10,000) that is distributed more than one year after the date of death, part of the inheritance is taxable interest income to the recipient. Another circumstance in which an inheritance could generate reportable taxable income is if the inheritance is of &quot;income in respect of a decedent&quot; (e.g. retirement account distributions, or a final paycheck). More generally, if the estate had taxable income in excess of $100 as determined in IRS Form 1041 (e.g. due to the sale of capital assets that have appreciated after the date of death, rental income, dividends, or interest received), this estate income is allocated to the beneficiaries of the estate receiving distributions and flows through to them as a result of the &quot;distributable net income deduction&quot; of the estate, and has to be reported on Schedule K-1 from the estate with the beneficiary's Social Security numbers. So, there are multiple reasons why a W-9 might be required in connection with an inheritance.
Are the monetary donations collected by the recipient subject to federal taxation according to IRS law? Yes. Usually, money received from an activity from third-parties with no personal relationship to you (assuming that &quot;you&quot; are not a tax exempt organization), are taxable income under Section 61 of the Internal Revenue Code as interpreted by case law, as a form of &quot;compensation for services&quot;, under I.R.C. § 61(a)(1), or as &quot;gross income derived from business&quot;, under I.R.C. § 61(a)(2) (exactly which prong of I.R.C. § 61(a) it comes under isn't legally relevant for tax purposes in this situation). This is also informed by I.R.C. § 83(a) (which is a general rule even though the balance of the Code section applies mostly to equity compensation in entities), which states in the pertinent parts (material in brackets inserted for clarity): If, in connection with the performance of services, property is transferred to any person other than the person for whom such services are performed, the excess of the fair market value of such property . . . over the amount (if any) paid for such property [by the person who receives the property], shall be included in the gross income of the person who performed such services[.] But, gifts are expressly excluded from income under Section 102 of the Internal Revenue Code as interpreted by case law. One point which the case law makes clear, however, is that an obligation to pay doesn't need to be a legally binding obligation to make a payment something that counts as income rather than a gift. The tax law instead looks at the substance of the interaction and the reality of how decent, well mannered people would act under circumstances in which they receive an uncompensated benefit. Ultimately, whether are voluntary payment made through a private individual or business's website is taxable income or is not taxable because it is a gift is a case by case determination to be made in light of all of the relevant facts. For example, if your mother donates $7,500 to your website on your birthday, even though all of your other &quot;donations&quot; are from third-parties whom you have never met in person in amounts from $5 to $100 and you have provided all of those other third-parties with some kind of service or benefit through your website (e.g. they were allowed to read free webcomics or listen to music you wrote and recorded without charge over the website), the donation from your mother probably counts as a gift, even though the other donations probably count as income taxable income. But, in the absence for any reason for the donation other than gratitude for the performance of the services provided by the website, or for the conduct of the business that the website belongs to, the donation will generally be treated as income under Sections 61 and 83, rather than as a gift under Section 102. The notion of a gift is normally limited by case law and suggestive related section of the Internal Revenue Code that illustrate its intended meaning in the case of gift loans and bargain sales made for donative purposes, to circumstances in which the person making the gift has received nothing in return for it. A donation to a website usually wouldn't meet this test to show a transfer's character as a gift. The most familiar example, upon which there is a great deal of case law and authoritative guidance, is that tips paid to restaurant and hospitality industry workers are income rather than gifts, and are subject not only to income taxation but also to FICA payroll taxation. These tipping situations are closely analogous to voluntary payments made through a website. There are a great many tax regulations, court cases interpreting tax law, and authoritative guidances from the IRS (such a revenue rulings) that address the basic concepts that I've set forth above. And, the income tax law authorities are further informed by the statutes and case law governing gift taxation, which is, as intended, interpreted to define a gift in a matter that dovetails more or less perfectly with the definition of a gift for purposes of Internal Revenue Code Section 102. As the IRS explains at its website discussing the gift tax for which the concept of a gift is defined consistently with the income tax concept of a gift: The gift tax is a tax on the transfer of property by one individual to another while receiving nothing, or less than full value, in return. The tax applies whether or not the donor intends the transfer to be a gift. The gift tax applies to the transfer by gift of any type of property. You make a gift if you give property (including money), or the use of or income from property, without expecting to receive something of at least equal value in return. If you sell something at less than its full value or if you make an interest-free or reduced-interest loan, you may be making a gift. Donations which are not income are gifts and there is a tax on gifts given (paid by the donor rather than the person receiving the gift). But, there is a $15,000 per donor per donee exception per year from gift taxation for gifts under the Internal Revenue Code, in addition to more than $12 million per lifetime per person exemption from gift and estate taxation for gifts in excess of this $15,000 amount (called the annual exclusion) and inheritances left at death. So, usually, if a transfer is treated as a gift rather than as income, no tax will be due. But this part of this answer's short summary of the law is the top level conceptual framework for all of those other subordinate tax law authorities. Also, this income is also subject to self-employment taxation, which is imposed in lieu of FICA on income which is not a wage, salary or employment-related tip. Often self-employment taxes are due on self-employment income even when no federal income tax is owed upon it. if there is a clear answer, do states with personal income taxes do the same regarding website donations? Most states and localities with a personal income tax start from the federal definition of income and modify that definition in ways that the taxing jurisdiction deems fit either to make sense (limiting the tax to income related to the state, for example, at least for non-residents), or to fit local policy preferences (e.g. exempting from income taxation, capital gains made in an investment in the state favored by state lawmakers). Almost no states or localities have chosen to deviate from the federal definition of income for income tax purposes with respect to donations made to websites that are not non-profit entities.
What can I do to prevent someone from leaving me something in their will? Nothing. Allowing other people to legally change someone's will defeats the purpose of a will: To express the writer's last wishes. (That is why the full title is a "Last Will &amp; Testament"). Do I have to take responsibility for things left to me in a will or are there other options? No! You do not have to accept an inheritance. The legal process for rejecting an inheritance is called "disclaiming." It happens often enough that there are plenty of nice summaries of the process on-line. Your next step should probably be to read one of them.
Any property of a decedent which does not evade probate because of a transfer on death deed is subject to probate. It turns out that this probate avoidance in New York can include one automobile within a family, here is the main form and a companion form. But let's say that the car is worth more than the limit (and you don't want to pay the estate the excess), then it might have to go through the longer process. That does not mean that the spouse cannot use the vehicle, as long as the spouse takes reasonable action to transfer the vehicle (waiting 5 years is not reasonable).
Can an employer charge employee/contractor a processing fee for payment? No. The matter depends on whether the person qualifies as employee for purposes of the British Columbia Employment Standards Act. Your description suggests that you meet criterion (b) of the definition of employee insofar as you are (i.e., if you are) "a person an employer allows, directly or indirectly, to perform work normally performed by an employee". See section 1(1) of the Act. Section 21(1) prohibits an employer to "directly or indirectly, withhold, deduct or require payment of all or part of an employee's wages for any purpose", and item (2) prohibits the employer to "require an employee to pay any of the employer's business costs except as permitted by the regulations". There is no indication that the alleged business cost of e-transfers would be one such exception. do I have any recourse for such a small amount of money that isn't worth starting a law suit over? You have the option to file a complaint in "an office of the Employment Standards Branch". See sections 74 et seq for further details. You are not specifying the amount of the e-transfer that is being deducted from your compensation. The smaller the amount(s) at issue, the more important it will be for your complaint to persuasively explain how it is not "frivolous, vexatious or trivial". See section 76(c). Directing the employer's attention to the aforementioned statutory prohibition prior to filing a complaint tends to disprove allegations of vexation. That is because you are giving the employer an opportunity to mend its conduct and avert the proceedings that otherwise would take place. That being said, a very occasional cost of few cents is very likely to lead to a conclusion of vexation or bad faith regardless of your preliminary steps. In most other contexts, though, it is in your best interest to stay aware of the obligations that are being presented/proposed to you so that your actions do not constitute an acceptance of terms &amp; conditions you would rather reject. Not all contracts come in the form of a written document signed by the parties.
Look at the form letters from the consumer advice center, e.g. Lower Saxony. Keep in mind that the entity may be allowed/required to keep some of your data. Anything that impacts their taxes, for starters. And your information/deletion request might also have to go on file, to mirror their record of a before-due-date deletion.
Sadly, her assets will go into probate, and a judge/probate master will have to rule on how they're disbursed. Typically someone will be appointed as Administrator to the mother's estate. The administrator will contact all creditors, assemble and inventory/appraise the assets (i.e. furniture, car, house, bank accounts, etc.) and pay funerary expenses. Since she died intestate, there will be certain specific rules about who inherits the proceeds. The best avenue for the OP is to petition the court to appoint her as administrator of the estate.
If this is Florida, then a will has to be written. If there is no written will, the estate falls under the law of intestate succession, part 1. Per § 732.502, every will must be in writing, signed, and witnessed (therefore a voice mail is not a will). If there are any relatives, they may be entitled to a share; otherwise, the estate goes to the state, where it is sold and the funds go into the state school fund (§732.107).