In his will,John named his nephew Steve as executor of the estate.Steve is to receive a fee of $12,000 for serving as executor.When John died,Steve performed the executorial services and received the fee.Steve can exclude the $12,000 from gross income as an inheritance from his uncle's estate.

Question

Quizplus · Accepted Answer

The $12,000 fee for serving as executor is not considered an inheritance and therefore cannot be excluded from gross income. It is taxable income to Steve.

In His Will,John Named His Nephew Steve as Executor of the Estate.Steve