Parents Gifting Their Children FYI

[olroadbeech]

Before my parents passed away they gifted their children the max amount per year which I think was $13,000 a year. It may have increased by now.

The reason was to keep their total estate below a certain level before they died so any of their estate taxes over a certain amount ( think it was 600k )would not be taxed at about 50%.

none of the children needed the money but it was easy to understand their motives.

now the shoe is on the other foot and we will have to do the same thing soon. I am not sure if it is a good thing to give all our children $14k a year as gifts since they are only in their 30's but I would rather do that than give it to Uncle Sam.

or we could spend it all before we croak but i dont know on what. we have never been big spenders.

I would only give cash and not cash in stocks or real estate.

 

[over9five]

Forget the kids.
Travel!
Come cruise the Canal with us. We leave next Monday!

 

[Turdferguson]

Before my parents passed away they gifted their children the max amount per year which I think was $13,000 a year. It may have increased by now.

The reason was to keep their total estate below a certain level before they died so any of their estate taxes over a certain amount ( think it was 600k )would not be taxed at about 50%.

none of the children needed the money but it was easy to understand their motives.

now the shoe is on the other foot and we will have to do the same thing soon. I am not sure if it is a good thing to give all our children $14k a year as gifts since they are only in their 30's but I would rather do that than give it to Uncle Sam.

or we could spend it all before we croak but i dont know on what. we have never been big spenders.

I would only give cash and not cash in stocks or real estate.

Mom??
Its your long lost son

 

[IVE GOTTA PACKAGE 4U]

You forgot about the Medicare look back.
And the estate tax doesn't apply if it's less than a little over 10 million for a married couple.

You state may have a state inheritance tax but you don't have to worry about federal unless you have tons of cash



Do a little research next time


You're welcome


IRS Announces 2016 Estate And Gift Tax Limits: The $10.9 Million Tax Break

 

[IVE GOTTA PACKAGE 4U]

Mom??
Its your long lost son

That's why people give up kids for adoption

 

[oldngray]

Forget the kids.
Travel!
Come cruise the Canal with us. We leave next Monday!

I plan on spending all of my kids inheritance.

 

[over9five]

I plan on spending all of my kids inheritance.

You're dumb if you don't!

 

[burrheadd]

I plan on spending all of my kids inheritance.

I told mine my goal is to die the day after my money runs out

 

[IVE GOTTA PACKAGE 4U]

The 14,000 gift is another misunderstanding. That's the amount you can give without doing any paperwork. You. Could give you kids a million dollars if you wanted to. No income tax is due by you do need to file the paperwork

 

[Brownslave688]

You forgot about the Medicare look back.
And the estate tax doesn't apply if it's less than a little over 10 million for a married couple.

You state may have a state inheritance tax but you don't have to worry about federal unless you have tons of cash



Do a little research next time


You're welcome


IRS Announces 2016 Estate And Gift Tax Limits: The $10.9 Million Tax Break

Yeah I was like 600k lol

 

[IVE GOTTA PACKAGE 4U]

Yeah I was like 600k lol

State taxes might be a different issue, depending on which state you live in.

 

[Brownslave688]

State taxes might be a different issue, depending on which state you live in.

I would move then

 

[silenze]

$2 million in 2008, $1 million in 2003 and $675,000 in 2001. The estate and gift tax exemption amount was set at $5 million in 2011, indexed for inflation.

 

[IVE GOTTA PACKAGE 4U]

I would move then

Many people do. The inheritance tax isn't bad here if you or a direct up o down realtive but can get pricey if you leave it to a friend or distant relative.

No tax if it goes to your spouse.

 

[IVE GOTTA PACKAGE 4U]

I would move then

Inheritance Tax for Pennsylvania Residents | Montgomery County, PA - Official Website

 

[bbsam]

Forget the kids.
Travel!
Come cruise the Canal with us. We leave next Monday!

Spoken like a true baby boomer.

 

[olroadbeech]

I plan on spending all of my kids inheritance.

my parents said that too but they still left us a lot.

We really don't travel much or like to fly. We take day trips and weekend trips. Stuff like that. The house is paid for and we have everything we need.

Just don't really know what we can spend it on. We are thinking of setting up a trust for college educations and down payments on homes. Just not sure what parameters to set.

With 6 grown children and 12 grands we feel that is the best legacy we can leave.

 

[Catatonic]

The 14,000 gift is another misunderstanding. That's the amount you can give without doing any paperwork. You. Could give you kids a million dollars if you wanted to. No income tax is due by you do need to file the paperwork

And the purpose of the paperwork is to provide a paper trail so the Central government can try and tax any amount over $14,000.

 

[burrheadd]

my parents said that too but they still left us a lot.

We really don't travel much or like to fly. We take day trips and weekend trips. Stuff like that. The house is paid for and we have everything we need.

Just don't really know what we can spend it on. We are thinking of setting up a trust for college educations and down payments on homes. Just not sure what parameters to set.

With 6 grown children and 12 grands we feel that is the best legacy we can leave.

Start a retirement home for old strippers
Iam sure there is a need

 

[IVE GOTTA PACKAGE 4U]

And the purpose of the paperwork is to provide a paper trail so the Central government can try and tax any amount over $14,000.

Absolutely. But people have the misconception that you can't do more than that.