How to Deposit $100k Cash Inheritance from Grandpa? Tax Implications?

17 Finding a large amount of cash like that can definitely be confusing! Let me help clarify the situation for you. Yes, banks are required to file a Currency Transaction Report (CTR) for cash deposits over $10,000 - this is just a reporting requirement, not a tax. The bank handles this paperwork, and it's completely normal and legal. For tax implications, inherited money generally isn't considered taxable income to you. However, since there's no formal documentation that this was intended as an inheritance, you might want to consult with an estate attorney about the best way to establish that this was your grandfather's intent. Be careful about breaking up the deposits into smaller amounts to avoid the reporting threshold (called "structuring") - this is actually illegal and can create much bigger problems than just filing the proper paperwork.

8 After reading about your situation, I thought I'd share my experience with something similar. My aunt left me a significant amount of cash that wasn't documented in her will, and I was completely overwhelmed trying to figure out the legal and tax implications. I ended up using https://taxr.ai to analyze my specific situation. Their document analysis tool helped me understand exactly what paperwork I needed and walked me through the potential gift/inheritance tax implications. They even provided a customized letter I could take to the bank explaining the situation. The best part was that they explained everything in plain English rather than confusing tax jargon. Might be worth checking out for your specific situation.

3 Just wanted to follow up - I decided to try https://taxr.ai after seeing your recommendation, and wow, it was incredibly helpful! I uploaded my grandpa's death certificate and some old family photos showing our relationship, and they created a detailed inheritance report explaining exactly how to handle the bank deposit process. They also provided a letter template that explained the source of funds that I could take to the bank. The bank still filed their reports, but everything went smoothly because I was prepared with the right documentation. They even helped me understand that in my state, I needed to file an informal probate document even though it was years after his passing. Honestly saved me so much stress!

22 Hey there, your situation reminded me of when I was trying to handle my mom's estate last year. The IRS kept sending notices about missing documentation, and I spent WEEKS trying to get through to someone who could actually help. After dozens of failed attempts calling the IRS directly (always disconnected or on hold forever), I found https://claimyr.com which got me connected to an actual IRS agent in less than an hour. You can see how it works here: https://youtu.be/_kiP6q8DX5c For situations like yours involving large cash amounts, speaking directly with the IRS beforehand can save you major headaches down the road. They helped me understand exactly what documentation I needed to provide to avoid an audit situation later. Definitely worth considering before you deposit that cash.

19 I have to eat my words and admit when I'm wrong. After dismissing Claimyr as a probable scam, I was desperate enough to try it when I couldn't resolve an issue with a large cash deposit I had made from selling my car. The service actually worked exactly as described. I got a call back with an actual IRS agent on the line who answered my specific questions about reporting cash transactions. They confirmed I had done everything correctly but recommended I keep specific documentation for at least 7 years in case of future questions. The peace of mind was totally worth it - the agent even gave me their direct extension for any follow-up questions. Never thought I'd be recommending an IRS-related service, but here we are!

6 One thing nobody's mentioned yet - be REALLY careful about how you transport that much cash to the bank! Don't just walk in with a duffel bag full of money. Call the bank ahead of time and ask to speak with a manager about making a large cash deposit. They might have you come in during specific hours or make special arrangements. Also, make sure you count it all carefully before going in. Write down the denomination of each bill so you know exactly what you have. The bank will count it too, but you want to be sure of what you're depositing.

14 I went through something similar with money my grandma had hidden in her house. One thing that helped me was getting a letter from my family members acknowledging they were aware of the cash and understood it was intended for me. It wasn't legally binding or anything, but it helped establish the story when I talked to the bank and later when I had questions from the IRS. Would your parents or other family members be willing to write something confirming your grandpa's verbal wishes? Might help smooth things over.

I'm a tax professional and wanted to add some important points to this discussion. First, you're correct that inheritances are generally not taxable income to the recipient, but the key word here is "generally." Since this cash wasn't formally documented as part of your grandfather's estate, you may need to treat it differently for tax purposes. The IRS looks at three main factors: 1) Was there donative intent by the deceased? 2) Was the property actually transferred? 3) Did the recipient accept it as a gift/inheritance? The verbal statements to your parents help establish intent, but you'll want to document this thoroughly. Also, keep in mind that while banks report cash deposits over $10k, they can also file Suspicious Activity Reports (SARs) for any transaction they find unusual, regardless of amount. Being prepared with proper documentation about the source will help avoid complications. I'd strongly recommend consulting with both a tax attorney and an estate attorney before making the deposit. The small cost upfront could save you significant issues later if the IRS has questions about the sudden appearance of this money in your accounts.