Red Bluff, CA Estate Planning Law Firms & Lawyers

Too much unknown here, to be of much help. Why was this done? If done in a probate context, the answer is certainly yes. All beneficiaries (interested parties) are entitled to a copy of the invoices. If one of them is represented by counsel, then that lawyer can certainly get a copy of the invoice. Is there a disadvantage to them getting this?

Generally, inheritances are not taxed as income except in situations where the inheritance was comprised of "income in respect of a decedent." A typical situation that would fall into this category would be distribution from an IRA or 401(k) plan. The inheritance could affect any benefit under Medicaid BUT NOT SSDI. Life insurance proceeds are not generally subject to income tax. Depending on what Congress does or doesn't do in the next two months could affect whether or not there would be any federal estate taxes. (Currently there is a $5Million exemption from estate tax and generation skipping transfer taxes.)

Your friend is incorrect and you should probably start interviewing attorneys to find one that gives you the answers that you feel comfortable with and that you think will be responsive to you and easy to work with. There is no inheritance tax in CA and the federal estate tax exception is $5M, not $1M. Inheritance is not income and taxes on the inheritance will not be due. A fiduciary tax return will be due and a K-1 will be distributed to the beneficiaries, but no tax will be due. Do keep in mind however, CA withholds 3% from all real estate transactions, some of which will likely be returned when the fiduciary tax return is filed.