Gift or Inheritance
Question :

Prior to the recent death of my Christian grandfather, he gave me $5,000. This would have been money I inherited, but he did not leave it to me in his will, to avoid having to pay taxes to the government on it. Must I pay khums on this money?

Answer :

If your grandfather has given you the mentioned amount of money as a gift while he was alive, then it is an income subject to khums, similar to other earnings. If the money was given to you as a trust that you will own after his death, then it is an inheritance that is not subject to khums.