Message Font: Serif | Sans-Serif
 
No. of Recommendations: 0
2) So my wife and SIL hopefully won't have to pay inheritence taxes at the time of her death.

Exemption amount for 2013 is $5.25 million. If she is worried about item 1, then item 2 shouldn't be a problem.


And, of course, Item 2 ignores the fact that by gifting the house to them, they inherit her basis, and so will owe capital gains taxes when they sell vs. inheriting the house at the stepped-up basis, and if the entire estate is below that threshold, no taxes would be owed.

So it's possible that she is actually creating a tax liability where there was none before by doing this.

Glad she is going to see an attorney to help her make appropriate plans.
Print the post  

Announcements

Disclaimer:
In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement