Maude Flanders (dead) leaves $10000 in her will to her neighbor, Marge Simpson.
ID: 2373416 • Letter: M
Question
Maude Flanders (dead) leaves $10000 in her will to her neighbor, Marge Simpson. The will requires Marge to use a portion of the money towards "fighting to maintain high standards of decency and morality within their neighboorhood". The will doesn not specify how much Marge must use to meet this requirement of fighting for decency/morality. Will the $10000 be treated as income to Marge in 2012 if she agrees to accept the $10000 and the required conditions for its use? also would it be inheritance or gift? Is it taxable? if so wat portion of it?
Explanation / Answer
Marge wouldn't have to pay anything as the money is being given to her. I don't think $10,000 is high enough to get taxed, and the only person paying tax is the person who is giving the money. This is inheritance money, not a gift.