In article <d1hhld$md8$1[at]msunews.cl.msu.edu> ,
Prof Reid <reid[at]cse.msu.edu> wrote:

- quote -

Have you sought out any professional advice on this item?
I am under the impression that the government as scaled back
and eliminated many forms of estate taxes. I believe that
estate taxes on real estate does not kick in until you have
$1.1-million in value (but I do not know any of the details).
What I do know that is by gifting the home when you are alive,
your children retain your basis value. If you transfer at
death, they get a stepped up basis value. That means that
if they ever sell the place, they will pay far more in
capital gains than if you allow the property to transfer
upon your death via a will. Your trick could backfire and
actually cost them far more in taxes than what they would
otherwise have to pay.

-john-

--
================================================== ====================
John A. Weeks III 952-432-2708 john[at]johnweeks.com
Newave Communications http://www.johnweeks.com
================================================== ====================

Thanks John and David.

$11K gifting will take a few years--we're "lucky" enough
to have Great Lakes lakefront. It would be nice to get
it out of the estate tax pool as soon as possible.

Dick

David B. Redmond <redmonds[at]sprynet.com> wrote:
: On Sun, 13 Mar 2005 12:17:24 CST, "John A. Weeks III"
: <john[at]johnweeks.com> wrote:

In article <d11n6u$1ft3$1[at]msunews.cl.msu.edu> ,
Prof Reid <reid[at]cse.msu.edu> wrote:
My wife would like her third to go (now) to the two
- quote -

daughters each year. That $44,000 per year. How
much is your wife's share worth? A good tax accountant
might find a way to slide in an installment of this
for 2004 given that we are not at April 15 yet. If
that was workable, you'd be at $88,000 already.
:You could also just hang onto it, and put it in your
will. That would allow you to transfer it on your
wife's death without tax issues (in many states, at
least).
:-john-

: Don't forget a fact that seems to often be misunderstood about the
: gift tax $11,000 exclusion is that while gifts larger than that amount
: "become subject to tax" this does not mean that any tax is necessarily
: ever actually paid. It is just that now the excess becomes part of
: the lifetime gift and estate tax exclusion. Depending on the
: situation regarding total wealth and estate planning this may be an
: important concern or may be absolutely of no concern. There is the
: difference that gifts over $11,000 will kick off filing a gift tax
: return.


======================================= MODERATOR'S COMMENT:
Please trim the post to which you are responding. "Trim" means that except for a few lines to add context, the previous post is deleted.

On Sun, 13 Mar 2005 12:17:24 CST, "John A. Weeks III"
<john[at]johnweeks.com> wrote:

- quote -

Don't forget a fact that seems to often be misunderstood about the
gift tax $11,000 exclusion is that while gifts larger than that amount
"become subject to tax" this does not mean that any tax is necessarily
ever actually paid. It is just that now the excess becomes part of
the lifetime gift and estate tax exclusion. Depending on the
situation regarding total wealth and estate planning this may be an
important concern or may be absolutely of no concern. There is the
difference that gifts over $11,000 will kick off filing a gift tax
return.

In article <d11n6u$1ft3$1[at]msunews.cl.msu.edu> ,
Prof Reid <reid[at]cse.msu.edu> wrote:

- quote -

Each you and your wife can give $11K to each of the
daughters each year. That $44,000 per year. How
much is your wife's share worth? A good tax accountant
might find a way to slide in an installment of this
for 2004 given that we are not at April 15 yet. If
that was workable, you'd be at $88,000 already.

You could also just hang onto it, and put it in your
will. That would allow you to transfer it on your
wife's death without tax issues (in many states, at
least).

-john-

--
================================================== ====================
John A. Weeks III 952-432-2708 john[at]johnweeks.com
Newave Communications http://www.johnweeks.com
================================================== ====================

Hello--

My wife and I are attempting to clear out some
of our assets that we don't need or use.

Here's one we'd like to give away (in the family):

My wife is one of three joint owners of a lakeside
cottage. My wife paid a third of the purchase
price using her own funds (inheritance), about four
years ago. Two of our daughters are the other owners.

My wife would like her third to go (now) to the two
daughter-joint-owners so that they'd each own half.

Is there a good method for this transfer? One
that wouldn't need to be stretched out using
$11,000 yearly gifts, and wouldn't require gift tax,
nor be counted against the estate tax exemption amount?

Thanks,

Dick