Inheritance taxes Federal and State of Maryland
My two brothers and I found out the state of Maryland is holding my deceased mother's 401K proceeds of about $85,000 in escrow, until we collect it. We have two options, 1 to collect it as a lump sum, which will be taxed and then split it up or 2. To collect it separately and each individually pay taxes on $28,333. My question: What State and Federal taxes would be collected on these sums. That is, what percentage are the State and Federal taxes on $85K and what are the State and Federal taxes on $28K? Two percentages for State and Federal in each scenario or a link to a tax chart would be welcome answers.
Thank you in advance!
P.S. Just to clarify the above, me and my brothers are trying to decide to get the money by the way of my older brother's power of attorney status I believe, which would get us three, the divided amount in about a year OR to use an old Will our father, her ex-husband has to get the total to him which we will then divide up. Time is a consideration as well, so any insight into how long a method will take would also be appreciated, as would any ideas on how to speed up the process.