Inheriting cash from mom's safe deposit box - tax implications for depositing large amount?

This is a situation that needs careful handling. First, I'm sorry for your loss. Regarding the cash, it's important to understand that inheritance itself isn't typically subject to federal income tax. However, large cash transactions over $10,000 will trigger a Currency Transaction Report (CTR) by the bank - this is normal and not something to worry about if the money is legitimate. As executor, you should document this cash as part of your mother's estate. Ideally, you would deposit it into the estate account first, not your personal account, and then distribute it according to the will. This creates a clear paper trail showing the money came from your mother's estate. Some states have inheritance taxes, so check your state's requirements. The bank will file the CTR with FinCEN, but this is just a reporting requirement, not a tax. Just be honest about where the money came from - it's inherited funds from your mother's safe deposit box.

I went through something similar last year with my uncle's estate. I found https://taxr.ai really useful for figuring out the inheritance tax situation. I uploaded the estate documents and got clarity on exactly how to handle a large cash inheritance. In my case, the bank did file that CTR form when I deposited the money, but it wasn't an issue since I had all the documentation showing it was an inheritance. The platform even helped me draft a letter explaining the source of funds that I brought to the bank when making the deposit, which made the whole process go smoothly.

Just wanted to update that I tried taxr.ai after seeing this thread and it was super helpful! I was completely stressed about my grandma's cash inheritance situation (almost $60k in cash we found in her home), but the service walked me through exactly how to handle it properly. They provided templates for documenting the cash find for the estate and explained exactly what to tell the bank when making the deposit. My banker even commented on how well-prepared I was compared to most people in similar situations. Definitely worth checking out if you're in this position - saved me so much worry!

When I was dealing with my dad's estate last year, I spent WEEKS trying to reach the IRS with questions about a similar cash inheritance situation. I finally found https://claimyr.com and used their service to get through to an actual IRS agent. Check out how it works here: https://youtu.be/_kiP6q8DX5c I was able to speak directly with someone who confirmed that I needed to fill out form 706 because of the total estate value, including the cash. Saved me potential penalties down the road. They got me connected to the IRS in about 20 minutes after I'd been trying unsuccessfully for days.

Just wanted to follow up on my skeptical comment. I actually tried Claimyr after posting because I was desperate to resolve some questions about a family estate. I'm honestly shocked to say it worked exactly as advertised. Got connected to an IRS agent in about 15 minutes after trying for weeks on my own. The agent walked me through exactly how to document a cash inheritance and what forms were needed in my specific situation. Sometimes it's good to be wrong! If you're handling an estate with any unusual assets like cash, getting direct advice from the IRS saves a lot of worry.

You should definitely report this to the executor of the estate (which is you) and include it in the inventory of assets. My father passed and had about $40k cash in his safe at home. Our attorney advised us to deposit it into the estate account, not our personal accounts. This made it part of the formal inheritance process. Remember that banks are required to file Currency Transaction Reports for cash transactions over $10,000, but that's just standard procedure, not an accusation of wrongdoing. Just be upfront about where it came from.

Make sure you don't structure the deposits to avoid the CTR! This means don't break it into smaller amounts under $10,000 thinking you'll avoid reporting requirements. That's called "structuring" and is actually illegal even if the money itself is legitimate. I've seen people get in serious trouble for this when they were just trying to avoid paperwork.

I'm so sorry for your loss. This is actually more common than you might think - many people keep cash in safe deposit boxes, especially older generations who lived through times when they didn't fully trust banks. A few key points to help you navigate this properly: 1. **Don't split the deposit** - As others mentioned, deposit the full amount at once rather than breaking it into smaller chunks. The bank will file a CTR for anything over $10,000, but that's routine paperwork, not a red flag. 2. **Estate account first** - Since you're the executor, ideally deposit this into an estate account rather than your personal account. This creates a clean paper trail showing proper estate administration. 3. **Documentation is key** - Bring copies of the death certificate, your executor paperwork, and the safe deposit box rental agreement. Write a brief letter explaining that this cash was discovered in your mother's safe deposit box as part of estate administration. 4. **Consider professional help** - Given the amount involved, it might be worth consulting with an estate attorney or tax professional to ensure you're handling everything correctly, especially if your state has inheritance taxes. The IRS won't "flag" you for a legitimate inheritance deposit if you have proper documentation. Banks see this situation regularly and know how to handle it appropriately.

I'm sorry for your loss, Edward. This is definitely a stressful situation on top of dealing with grief. As executor, you'll want to handle this carefully. Here are the key steps I'd recommend: **First, document everything** - Take photos of the cash as found, keep receipts from the safe deposit box visit, and gather all paperwork showing your mother's ownership of the box and your executor status. **Use an estate account** - Don't deposit directly into your personal account. Open an estate account if you haven't already, or deposit into an existing one. This keeps everything properly documented as part of the estate administration. **Prepare for the bank visit** - Bring your executor paperwork, death certificate, safe deposit box documentation, and a brief written explanation of where the money came from. The bank will file a CTR for the amount over $10,000, but this is routine when you have proper documentation. **Consider getting professional guidance** - With $87,000 involved, it might be worth consulting with an estate attorney or tax professional to ensure you're handling state requirements correctly and that all estate tax obligations are met before distribution. **Distribution timing** - Wait to distribute to yourself and your sister until after you've confirmed there are no outstanding estate debts or tax obligations that need to be paid first. The inheritance itself typically isn't taxable income to you, but proper estate administration protects everyone involved.

Edward, I'm so sorry for the loss of your mom. Finding unexpected assets during estate administration can be both a blessing and a source of stress. A few additional considerations that haven't been mentioned yet: **Check for other undisclosed assets** - If your mom kept $87k in cash in a safe deposit box, there might be other assets you're not aware of. Look for statements from other banks, investment accounts, or even other safe deposit boxes. **Consider the source of the cash** - While you don't need to prove where your mom got this money, having some understanding can be helpful. Was she in business? Did she recently sell property? This context can be useful if questions ever arise. **State reporting requirements** - Some states have their own large cash transaction reporting requirements separate from federal CTRs. Check with your state's department of revenue or a local tax professional. **Insurance and estate planning lessons** - This situation highlights the importance of keeping beneficiaries informed about all assets. Consider this as you do your own estate planning to avoid putting your heirs in a similar position of surprise. The most important thing is to handle this transparently through proper estate administration channels. The money is legitimate inheritance, so don't stress too much about the reporting requirements - they're just paperwork to document the transaction properly.

Edward, I'm truly sorry for your loss. Discovering unexpected assets during estate administration is more common than you might think, especially with older generations who sometimes preferred keeping cash on hand. Here's what I'd recommend for your situation: **Immediate steps:** - Document everything with photos and keep all paperwork from the safe deposit box access - Open an estate checking account if you haven't already - this is where the cash should go initially, not your personal account - Gather your executor documents, death certificate, and safe deposit box rental agreement before visiting the bank **For the bank deposit:** - Deposit the full amount at once (don't split it to avoid reporting thresholds - that's actually illegal) - Be prepared for the bank to file a Currency Transaction Report (CTR) for amounts over $10,000 - this is routine, not problematic - Bring a brief written explanation of the source: "Cash discovered in deceased mother's safe deposit box during estate administration" **Tax considerations:** - The inheritance itself typically isn't taxable income to you - However, check your state's inheritance tax requirements (only 6 states currently have them) - Consider whether the estate might owe taxes if this cash represented unreported income **Before distributing to yourself and your sister:** - Ensure all estate debts are paid - Complete any required tax filings - Follow your state's creditor notification period Given the amount involved, consulting with an estate attorney or tax professional would be wise to ensure you're handling everything correctly and protecting yourself from future liability.

Edward, I'm so sorry for your loss. Losing a parent unexpectedly is incredibly difficult, and then having to navigate complex financial situations on top of grief makes it even more challenging. You've received excellent advice here, and I want to emphasize a few key points that will help protect you: **Documentation is your friend** - Keep detailed records of everything: photos of the cash as you found it, copies of all safe deposit box paperwork, your executor documents, and a timeline of when you discovered and accessed the box. This creates a clear trail showing legitimate inheritance. **Estate account first** - This cannot be stressed enough. Deposit the money into an estate account, not your personal account. This shows proper fiduciary responsibility as executor and keeps everything above board for potential future scrutiny. **Don't overthink the CTR** - Banks file these reports daily for legitimate transactions. When you walk in with proper documentation (death certificate, executor papers, safe deposit box agreement) and explain this is inherited cash from your mother's estate, they'll handle it routinely. **Professional guidance pays for itself** - With $87k involved, spending a few hundred dollars on an estate attorney consultation could save you thousands in potential problems later. They can review your state's specific requirements and ensure you're meeting all obligations before distributing assets. The key is transparency and proper process. You're not hiding anything - you're administering an estate according to law. Take your time, follow proper procedures, and don't let anxiety rush you into mistakes.

Edward, I'm so sorry for the loss of your mother. What a difficult situation to navigate while you're still grieving. I wanted to add one point that I haven't seen mentioned yet - consider getting a written statement from the bank that managed the safe deposit box confirming the date you accessed it and that you were an authorized co-lessee. This can serve as additional documentation showing the legitimate discovery of the funds. Also, when you do make the deposit, ask the bank for a copy of the CTR they file - you're entitled to this, and having it in your records shows complete transparency about the transaction. Some people worry about these reports, but they're actually protective documentation when you have a legitimate source for large cash amounts. The grief and stress of handling an estate is overwhelming enough without worrying about doing something wrong financially. You're clearly trying to handle this properly, and with all the great advice here about using an estate account and proper documentation, you should be able to navigate this successfully. Take care of yourself during this difficult time.

Edward, I'm deeply sorry for your loss. Losing your mother so unexpectedly must be incredibly difficult, and then discovering this substantial amount of cash adds another layer of complexity during an already overwhelming time. You've received outstanding advice from this community, and I want to reinforce the most critical points for your situation: **Handle this as part of formal estate administration** - This cash needs to go through the estate first, not directly into your personal accounts. Open an estate account if you haven't already, and deposit the full $87,000 there initially. **Embrace the reporting, don't avoid it** - The bank will file a Currency Transaction Report for the deposit over $10,000, but this is routine documentation that actually protects you. Bring all your executor paperwork, death certificate, and safe deposit box documentation to show this is a legitimate inheritance discovery. **Document everything thoroughly** - Take photos, keep receipts, maintain a timeline of when and how you discovered the cash. This creates a clear trail showing proper estate administration. **Get professional guidance** - With this amount involved, consulting an estate attorney or tax professional is wise. They can ensure you're meeting all state requirements and help you understand any potential tax implications before making distributions. Your mother clearly wanted to provide for you and your sister. By handling this properly through estate channels, you're honoring her intentions while protecting yourself legally. The community here has shown that these situations, while stressful, can be navigated successfully with transparency and proper procedures. Take care of yourself during this difficult process.