Skip to main content
Message Font: Serif | Sans-Serif
No. of Recommendations: 0
The will says the two adult children split the parent's estate 50/50. The estate is all in cash, very uncomplicated. One kid wants more than half, the other one agrees. When the cash is disbursed, does the kid taking less than his designated share have to pay gift taxes on the amount that would have been his when it is going to the other kid?

I know it can always be gifted at $12,000 per year per person (or whatever the limit currently is), but I want to get it done all at once.

If done that way, yes. You will have to file a gift tax return. However, if you are still within 9 months of the date of death, you might be able to disclaim part of the inheritance and thereby achieve the same effect without gift tax consequences. Consult the attorney who is handling the estate. If this route is open to you, there are very specific actions to take and deadlines to meet.

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.
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.
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.