malloc[at]speakeasy.net wrote:

- quote -

That is correct, very few states actually sanction "common
law marriages".

- quote -

The only immediate tax consequences of her giving you the
assets is the possibility that she may have to pay a gift
tax. Unless she has made more than $1,000,000 in "taxable"
gifts during her lifetime, this possibility is remote.

As recipient of the gift, you have no tax liability. You
would receive either your girlfriend's "cost basis" (what
she paid for the asset) or the FMV at time of gift,
depending on what you eventually sold it for. At that time,
you would be subject to capital gains taxation. Obviously, a
cash gift would have no such consequences.

If you were actually married, none of these considerations
would come into play, as unlimited gifts between spouses are
allowed.

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"malloc[at]speakeasy.net" <malloc[at]speakeasy.net> wrote:

- quote -

Gifts don't create income tax.

--
David M. Woods, EA, ChFC, CLU
Woods Financial Services
Norwood, MA 02062
www.woods-financial.com

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IF she did, it is a gift, but I don't think she can give it
to you. If she can withdraw it all, she could do that and
give it to you. I suggest she leave it as-is, because I
don't htink she can do anything about it because a *Trustee*
, not she, controls it (nice gesture on her part, and she
probably knew the answer). A lot of people come into a
*Marriage* with an independent inheritance and don't
necessarily give 1/2 of it to their spouse. Later in life
you will want to *divide* assets so one of you isn't
top-heavy with assets. ed

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"malloc[at]speakeasy.net" <malloc[at]speakeasy.net> wrote:

- quote -

If she gifts no more than $11,000 per year (which would take
10 years) there would be no gift tax consequence. Otherwise,
consulting a tax attorney would be wise. Also consider how
each of you should draft your wills, if nothing else, to
provide for your child should one/both of you die.

--
Tom Healy, CPA
Boulder, CO
Web: http://www.tomhealycpa.com

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malloc[at]speakeasy.net writes:

- quote -

There won't be any tax burden. Gifts never incur income
tax liability (and aren't even reportable on income tax
returns). A gift of $55,000 will trigger the need for
a gift tax return, but no tax will be due.

As for the "trust fund", IANAL, but if the trustees are
distinct from your partner and operate at their own
discretion (even if they tend to do what your partner
asks of them), there may not even be any gift tax issues.

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

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malloc[at]speakeasy.net wrote:

- quote -

Apparently not. http://www.unmarried.org/common.html

- quote -

As things are, making a gift to you of that amount will
require the filing of a gift tax return and using up $44,000
of her lifetime exemption. It will not likely result in tax
being due at the moment.

But what is the reason she wants to do that? Is it so you
can use it to take care of the child if she dies first? If
that's the purpose and you won't need the money for yourself
if she dies, she's probably better off putting it all in a
revocable trust and making you a successor trustee. That
way you can control the funds after she dies, and it will
all go for the benefit of the child. She might even name
you as a beneficiary as well.

Of course, there is another alternative. If she wants to
put the property in your name too, and without tax
consequences, you two can get married, which will solve the
problem.

Stu

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I have a girlfriend/Domestic Partner of 7 years and we have
a child together (Washington state apparently doesn't
recognize 'common law marriage'?)

Anyhow, she wants to (gift/give me/put in my name) half of
her trust fund assets, approximately 110k that is primarily
in mutual funds/stocks, but we're not sure how this can be
done without a significant tax burden. Any thoughts before I
run to a tax attorney?

Greatly appreciated.

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