The Motley Fool Discussion Boards

Previous Page

Financial Planning / Tax Strategies


Subject:  Re: Lifetime Unified Credit Date:  3/29/2000  3:47 PM
Author:  criser Number:  32952 of 127753

Can he gift to many other(trusted)relatives with the agreement that they have to give it back to his 3 children? He would write them a check and they would deposit it in the bank and write another check back to his 3 children for the $10,000.00 that was gifted to them.

No. This is an obvious sham transaction and the IRS would recharacterize it as gifts to the 3 kids. There are ways to leverage the $10,000 annual exclusion and other efficient ways to make gifts. Your father needs to see an estate planning attorney (and one who is an elder law specialist as well, if Medicaid/long term care is an issue). This is not the kind of planning that is do-it-yourself stuff.

Chris Riser
Copyright 1996-2018 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us