Message Font: Serif | Sans-Serif
 
UnThreaded | Threaded | Whole Thread (11) | Ignore Thread Prev Thread | Prev | Next | Next Thread
Author: acm4tax Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121268  
Subject: Re: father or son?...or even sister? Date: 8/13/2001 2:49 AM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 0
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.

Best wishes



Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (11) | Ignore Thread Prev Thread | Prev | Next | Next Thread

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.
Pencils of Promise - Back to School Drive
"Pencils of Promise works with communities across the globe to build schools and create programs that provide education opportunities for children."
Managing Your Wealth
Our own TMFHockeypop from Rule Your Retirement fame on the TV show Managing Your Wealth.
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.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
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 "#1 Media Company to Work For" (BusinessInsider 2011)! 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