Q: I inherited some money, $8,000.00 from my boyfriend’s estate. I want to give it to my daughter but was told that I cannot do so.
A: Once you inherit the money, you can do whatever you want with the money, as it is yours. Make sure the estate paid the inheritance tax and any income tax arising from any estate asset. If the estate did not pay taxes, you may continue to be responsible for payment and you may be giving your daughter a gift that is subject to inheritance tax. If not paid, it will accumulate interest and penalties, and you could be summoned to court in the future. The one exception to this is if you are receiving Medicaid benefits or will be doing so within the next five years.