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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.

Ira
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