Discussion:Gifts vs. Inheritances
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| Revision as of 01:16, 22 November 2007 Hdoverby (Talk | contribs) (One angle that I) ← Previous diff |
Revision as of 01:22, 22 November 2007 Bengoshi (Talk | contribs) (I must have clic) Next diff → |
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| {{ForumReplyPost|UserID=Hdoverby|Date=22 November 2007|Text=One angle that I thought of (if no other) is the Gift Tax Credit (Chap 12A section 2505). It would allow up to $1,000,000 lifetime gifting. Another angle is, can she receive her portion as benficiary and make the distribution to us other siblings as executrix?}} | {{ForumReplyPost|UserID=Hdoverby|Date=22 November 2007|Text=One angle that I thought of (if no other) is the Gift Tax Credit (Chap 12A section 2505). It would allow up to $1,000,000 lifetime gifting. Another angle is, can she receive her portion as benficiary and make the distribution to us other siblings as executrix?}} | ||
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| + | {{ForumReplyPost|UserID=Bengoshi|Date=22 November 2007|Text=I must have click the save reply button right before Dennis. But Dennis is right, there's a chance it's too late to avoid gift tax consequences. In any case, Pat needs to see a professional as soon as possible.}} | ||
Revision as of 01:22, 22 November 2007
Discussion Forum Index --> Advanced Tax Questions --> Gifts vs. Inheritances
Discussion Forum Index --> Tax Questions --> Gifts vs. Inheritances
| 21 November 2007 | |
| My siblings and I just lost our mother. My sister Pat was designated as executrix. She has been managing my mother's holdings for several years and assumed that my mother's will was written such that the estate would be divided among each child (6 of us); it was not -- it was made out to Pat as the recipient. The total of the estate is $300,000.
Ok, we know that gifts and inheritances are not taxed; however, Pat's concern is that she will have to file a gift tax return since what she will be paying us (siblings) is over the $12,000 exclusion (in each case). Is she excluded entirely from this since she is one of the recipients (as well as executrix)? | |
Donniecastleman (talk|edits) said: | 22 November 2007 |
| I'm pretty sure there's a way to divide this up without worrying about gift tax, as it's more of a substance over form issue, that she probably meant for it to go to each of you individually but put Pat's name on it from just a paperwork standpoint. In my opinion, just off the top of my head, the payout equally to the 6 kids will not generate a gift tax situation at all. Riley or Tin will be along shortly with references to commend or dispute my thinking on this. | |
| 22 November 2007 | |
| Hdoverby, I recommend your sister retain an estate planning attorney to help administer your mother's estate. If done properly, she might be able to "disclaim"/"renounce" a portion of the estate passing to her, and avoid gift tax consequences when the property passes to the other siblings. I definitely do not recommend your sister try to do this alone. She should get a move on soon b/c there is a time limitation for making "qualified disclaimers" for gift tax purposes. Good luck. | |
| 22 November 2007 | |
| Probably could have been handled to avoid the gifting. As phrased, once Pat has receipt of the funds it cannot. | |
| 22 November 2007 | |
| One angle that I thought of (if no other) is the Gift Tax Credit (Chap 12A section 2505). It would allow up to $1,000,000 lifetime gifting. Another angle is, can she receive her portion as benficiary and make the distribution to us other siblings as executrix? | |
| 22 November 2007 | |
| I must have click the save reply button right before Dennis. But Dennis is right, there's a chance it's too late to avoid gift tax consequences. In any case, Pat needs to see a professional as soon as possible. | |
