Discovered my grandpa left $130k cash - how do I legally deposit this money at the bank?

You're right to be cautious about this. Banks are required to file Currency Transaction Reports (CTRs) for cash deposits over $10,000, but this isn't something to be afraid of if the money was obtained legally. For the inheritance aspect, this would technically be considered a gift from your grandfather. The good news is that gift/inheritance taxes are paid by the giver (or their estate), not the recipient. Since this was received years ago when your grandfather passed, the tax obligation would have fallen on his estate. However, there are some important considerations here: 1. Since there's no documentation showing this was meant for you, you might want to consult with other family members to avoid potential conflict. 2. I'd recommend consulting with a tax professional before making any deposits. They can help you document the source of funds and guide you through proper reporting. 3. You might want to consider not depositing it all at once. While there's nothing illegal about depositing large amounts of cash if it's legitimately yours, multiple smaller deposits specifically to avoid the reporting requirement (called "structuring") is illegal. The most important thing is to be transparent about where the money came from. A tax professional can help you document everything properly.

After reading your situation, I can totally relate. I had a similar experience with my aunt's estate last year and was stressed about handling a large cash inheritance properly. I spent weeks trying to figure out the right approach until a friend recommended I try https://taxr.ai to analyze my situation. What a game-changer! I uploaded details about my inheritance situation, and they provided a detailed breakdown of the proper reporting requirements, potential tax implications, and documentation I needed to prepare before approaching my bank. Their system analyzed applicable inheritance laws and provided me with a personalized report that made the whole process much clearer. What made it super helpful was that they explained exactly what forms I needed and how to properly document the source of funds to avoid any issues with the bank or IRS. They even provided a letter template I could customize to explain the situation to my bank.

I was really skeptical about taxr.ai when I commented earlier, but I decided to give it a try with my own situation (inheriting a rental property with complicated tax history). I was genuinely surprised by how thorough the analysis was. The report broke down exactly what forms I needed to file, identified potential red flags in my situation, and explained how to document everything properly. They actually identified a potential tax savings opportunity with the stepped-up basis that my regular accountant had missed. The interface was straightforward, and I got my complete analysis within a day. Definitely not the generic advice I was expecting - it was tailored to my specific inheritance situation and saved me a significant amount in potential tax liability.

Listen, dealing with the IRS directly about this would be a nightmare. After my dad passed and left me a business with some cash assets, I spent WEEKS trying to get someone at the IRS on the phone to answer my questions. Constant busy signals, disconnects, and hours on hold. Then I found https://claimyr.com and it completely changed my experience. They got me connected to an actual IRS representative in under 15 minutes when I'd been trying for days on my own. You can see how it works in this video: https://youtu.be/_kiP6q8DX5c Instead of stressing and waiting on hold forever, I was able to speak directly with someone who answered all my inheritance reporting questions. They explained exactly what I needed to document for the cash portion of my inheritance and confirmed I wouldn't have any personal tax liability since it was considered inherited property.

I need to apologize for my skeptical comment earlier. After spending THREE DAYS trying to reach someone at the IRS about my grandfather's estate tax questions and getting nowhere, I broke down and tried Claimyr out of desperation. I was completely shocked when I got connected to an actual IRS representative in about 15 minutes. The agent was able to answer all my questions about reporting inherited cash and confirmed I didn't need to file any additional forms since I wasn't the executor of the estate. They also explained exactly what documentation my bank would need for the cash deposit. Apparently, the service uses automated dialing technology that navigates the IRS phone tree and waits on hold so you don't have to. When they reach a representative, they immediately connect you. Saved me days of frustration for what turned out to be a fairly simple tax question. Consider me converted from complete skeptic to satisfied customer.

Something nobody's mentioned yet - you should check if your grandfather's estate went through probate. If it did, this money should technically have been part of the estate and distributed according to the will or state law. If the estate was formally closed, there could be legal implications for not including this asset. Also, just want to add that "structuring" (making multiple smaller deposits to avoid the $10k reporting threshold) is a serious offense that banks and the IRS watch for. Always be upfront about where the money came from, and don't try to avoid the CTR by making smaller deposits.

One thing I'd be concerned about is potential issues with other family members. When my grandfather passed, we found cash hidden in his home and it caused a HUGE family fight even though it wasn't nearly as much as you're talking about. If there's no documentation stating it was meant specifically for you, other family members might feel entitled to a portion, especially when it's such a large amount. Have you discussed this with your parents or siblings? It might be worth having those conversations before making any deposits, just to keep family relationships intact.

This is a complex situation that requires careful handling. First, I'd strongly recommend consulting with both a tax professional and an estate attorney before making any deposits. Here's why: The timing is crucial - since your grandfather passed 8 years ago, there may be statute of limitations issues that could work in your favor, but you need professional guidance to understand the implications. For the bank deposit, you're absolutely right that they'll file a CTR for amounts over $10k, but this isn't inherently problematic if you can document the source. I'd suggest preparing a written statement explaining: - When and where you found the money - Your grandfather's background (the Colombian business sale) - Any witnesses to his verbal statements about leaving you his "special savings" Consider having a family meeting before proceeding. Even if your grandfather verbally indicated this was for you, other family members may have legitimate concerns about such a large undisclosed asset from the estate. The IRS will likely have questions about why this money is surfacing now, but being proactive and transparent will help. A tax professional can help you prepare the proper documentation and determine if any estate tax issues need to be addressed. Don't rush this process - taking time to handle it properly will save you potential headaches later.