QUESTION
My mother passed away while in a class action lawsuit which has now been settled. I am administratrix. Will the estate have to pay tax on the settleme
Asked on May 07th, 2020 on Estate Planning - Texas
More details to this question:
My mother passed away while in a class action lawsuit which has now been settled (5 years afyer her death) I am administratrix of the estate. There were no creditors. Will the estate have to pay tax on the settlement? Also, how is the administratrix time and expenses amount determined?
1 ANSWER
2 Awards
If the estate earns (not receives) over a certain amount, it will owe taxes. In Texas an administrator is entitled to 5% of the amount the estate earns (not receives) and 5% of the amount the estate distributed.
Answered on May 08th, 2020 at 5:03 AM
This is general information. It cannot substitute for a personal consultation with an attorney. It is not intended to be legal advice or imply an attorney-client relationship.