Message Font: Serif | Sans-Serif
No. of Recommendations: 0
[[Yes, I was the one who had asked about my parents writing me a check for
500k as a sort of lifetime gift when the business we have operated sells. You had
said that they may be in a Pickle down the road with estate tax issues. Post
#8159 . They are not working with anyone on this. Rather than transfer shares of
stock to me we decided some time back this is how I would be compensated
when the business sold. Dont really know how it would affect them negatively.]]

It may impact them negatively, Jerry, because they can only give so much before they begin to use up all of their unified gift/estate tax credit.

The amount of the unified credit amounts to $625k currently. If they gift you $500k, that means that they'll pay estate taxes on anything that they own in excess of $125k (if they happen to pass away this year...God forbid).

And without the proper tax and estate planning, they could just screw up their entire estate, and pay CONSIDERABLE taxes to Uncle Sammy upon their death (remember that the estate taxes can reach as high as 60% of the net estate assets).

So if you parents are fortunate enough to have a half a million dollars to gift to you, they most likely have considerable other assets. And if that is the case, they could really get in an estate tax pickle.

So they CERTAINLY have enough money to cut lose with a few thousand and visit a qualified estate planner and get the appropriate advice and council for their estate. The attorney can be made aware of the gift that will be coming your way, and can plan for that gift within the entire estate plan. It would CERTAINLY be in their best interest. Believe me.

Good luck...
TMF Taxes
Print the post  


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.
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.
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.