Receiving Inheritance Check and need to know what to expect with taxes

My great uncle passed away last year and left part of his assets to my mom, but had a verbal agreement that she would split it between my sister and I. The check will be written to my mom for the amount of $109,000 so my half would be 54,500. I have no idea how the taxes would work on this. My mom lives in California and I live in Virginia. I guess I will actually be receiving a check from my mom. Will I have to pay taxes on it next year. Will she have to pay taxes on it even though she is giving it to my sister and I? any help is greatly appreciated!

Starlingsp,

Your mother will not have to pay income tax on the money she inheirits.
Your mother will have to pay income tax on the money that inheiritance earns while she has the money.

If your great uncle wanted you and your sister to have the money it would have been best for him to say that in his will. Depending on who other beneficiaries of the will are, your mother may be able to refuse the inheiritance, and then it may come directly to you. Legal folks would need to determine that situation.

Your mother can gift to you $13,000 in a calendar year without having to file a gift tax return. That $13,000 would also include incidental gifts such as birthday or Christmas gifts.
If you are married she can also gift $13,000 to your spouse, and the same amount to each of your children, and not file that gift tax return. Note that gifting to the children, the money is then property of the child.

Gifting more than the $13,000 in a calendar year to any one individual the gift tax return must be filed.
It is unlikely your mother would owe any gift tax, but the amount in excess of $13,000 to anyone individual during the year, begins to chip away at the $1,000,000 lifetime gift exemption we all have. Taxes would apply on the amounts your mother gave away that exceed that $1,000,000.

Even then your mother can gift up to the annual exclusion amount to as many individuals as she chooses.

You do not pay income tax on gifts you receive from individuals.

Mother should discuss this with her lawyer, CPA or tax advisor to fully understand the potential for tax ramifications.

Thank you so much for your insight on this!