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Financial Planning / Tax Strategies
|Subject: Re: father or son?...or even sister?||Date: 8/13/2001 2:49 AM|
|Author: acm4tax||Number: 53293 of 118719|
Tax law tends to humble even the most experienced tax person.
The short answer is that I really don't know what a gift is
Actually you did define it very well. Cash and anything of tangible value. Since a meal is consumed, it has no value after you've eaten your dinner. If a medical bill is paid on behalf of someone, if the money never crosses the palm of the beneficiary, it's not a gift either. Same with school tuition. But if cash is actually given or title of an asset is transferred, then there is a completed gift.
Getting back to the question at hand,What I am wondering is if my father has to keep the money in his name or can he split the money between my sister and myself and give it as a gift?
The father can decline part of the gift, in which case the funds are passed to the next heirs in line. If there are no other heirs to your long lost uncle's estate, that would put you and your sister in line to receive the proceeds of the estate. This is a question for the attorney who is handling the estate.
As others have stated, there is no tax paid by the beneficiaries. Assuming your dad will not give any more than 2/3 of the $800k, he will have no gift tax to pay, but he will have to file the form to show that no tax debt is owed.
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