"Brian Collie" <bc[at]sbcglobal.net> wrote:

- quote -

Right, alive on the date the gift is made. But not
necessarily at the end of the year. See IRC section 2513.

Stu

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- quote -

This is not correct. The donor must be alive to make the gift.

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an_ordinary_guy_158[at]hotmail.com (Bill) wrote:

- quote -

Never say never.

Technically you are correct. But under circumstances where
the giver cannot pay the gift tax, the recipient of that
gift may be required to pay it. Out of the gift, of course.

Stu

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webmaster[at]acsysweb.com (Todd) wrote:

- quote -

This is a bit more complicated than it seems.

The first rule is that a gift is not taxable income to the
recipient. If there is a tax it is gift tax, usually paid
by the person who made the gift.

The next rule is that any person can give any other person
gifts totalling up to $11,000 (the figure will go up in
future years based on inflation) in any calendar year,
without having either to incur or report gift tax. So in
your case the first $22,000 given to you in each year is
free from any tax.

Finally each person may give up to (this year) $1 million in
total gifts (not including the $11,000 gifts per year) in
their lifetime or in their estate before either gift or
estate tax will actually have to be paid.

But there is another part of this that you should look into.

You say the gift is as a result of your stepfather's death.
Was the gift stated in his Will or trust? Was it his
property that he left to your mother?

It is possible that the gift can be characterized as from
your stepfather (rather than your mother) to you, which
would mean that it would not impact your mother's gift tax
situation at all.

If it was money that was willed directly to your mother,
local law may allow her to do a qualified disclaimer (within
9 months of your stepfather's death), which would allow the
property to flow directly to you from his estate, also being
treated as a gift from him rather than from your mother.

If appropriate, check with a local estate lawyer to
determine if a qualified disclaimer would work under your
state's law.

Stu

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"Todd" <webmaster[at]acsysweb.com> wrote:

- quote -

The good news is that the receiver of a gift such as this is
not taxed on the money and/or property. Your Mother may
have to pay gift tax, but you and your wife will not have to
pay anything on it.

Wayne Brasch, CPA, M. S. Taxation

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webmaster[at]acsysweb.com (Todd) writes:

- quote -

None at all.

- quote -

No. She could give you $1,000,000,000,000 or more
without any tax consequences *to you*.

However, there will be tax consequences *for her*. At
the least she'll have to file a gift tax return.

- quote -

Your tax on it is -$0- and you do not report it
anywhere.

--
Rich Carreiro rlcarr[at]animato.arlington.ma.us

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webmaster[at]acsysweb.com (Todd) writes:

- quote -

Gifts are not taxable income to the recipient, so you and
your wife have nothing to do but write thank you notes.
Your mother, OTOH, will face gift tax filing requirements
with this plan. (She already has such for 2003.)

Your mother should be talking to an estate planner yesterday.

Phil Marti
Topeka, KS

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Todd posted:

- quote -

First of all, the *recipient* of a gift never owes a tax on
the gift itself. However, the *giver* may incur a charge
against the eventual estate, which would limit the amount of
tax-free inheritances.

From the facts provided, your mother could give you and your
wife $11,000 each (for a total of $22,000) this year, and --
since your father died this year and she would [presumably]
be filing jointly as surviving spouse -- she could legally
provide both you and your wife with another $11,000 each in
the name of your father.

In future years, your mother could give $11,000 each to you
and your wife, with no tax or estate tax consequences. Be
aware that amount is subject to change, and you (or your
mother) should seek updated information or professional
advice in the future.

Hope this helps.

Bill

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Just looking for some general guidenance on a cash gift I
will recieve this year and/or possibly next. My mother has
given me and my wife $30,000 this year and is planning to
give another $130,000. Yes this is a very generous situation
except this is only happening due to the loss of my step
father this year to cancer. So my obvious question is tax
implications for me and my wife? Is there a lifetime limit
my mother is allowed to give to us without tax consequences?
If not how do I go about figuring out my tax on this?

Thanks,
Todd

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