<p>It’s not possible AFAIK to legally put $70,000 in an IRA, unless you are rolling it over from some other sheltered account like a 401k or another IRA.</p>
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If you are applying to FAFSA-only schools, and your mom owns a house, she could use it to pay down her mortgage. House equity is not counted on the FAFSA.</p>
<p>For PROFILE schools, there are some things you can do with life insurance to shelter the money, but it is somewhat complicated and the benefits are uncertain.</p>
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There are no inheritance taxes at the federal level. There are 11 states that have inheritance taxes in some form: Connecticut, Indiana, Iowa, Kansas, Kentucky, Maryland, Nebraska, New Jersey, Oregon, Pennsylvania and Tennessee. If you don’t live in one of these states, there are no taxes due.</p>
<p>Inheritances are not income, but will add to your assets. So only 5.6% max will be added to your EFC.</p>