Comments on: Gift Tax Exclusion http://askmattcpa.com/2009/10/gift-tax-exclusion/ we are free agents nation ... Mon, 30 Aug 2010 04:42:21 +0000 http://wordpress.org/?v=2.9.1 hourly 1 By: matt cpa http://askmattcpa.com/2009/10/gift-tax-exclusion/comment-page-1/#comment-103 matt cpa Wed, 02 Dec 2009 16:53:33 +0000 http://askmattcpa.com/2009/10/gift-tax-exclusion/#comment-103 Roberta - Gift exclusion is used to reduce the total estate (assets). Gift tax return (Form 709) is required only during her life-time. These are estate planning techniques before a person passes away. When your mother passed away, the value of her total assets was fixed. Such estate, including money in banks, value of her house, and other investments, will be subject to estate tax (Form 706). For 2009, if her total estate is less than $3.5 million, the estate tax due should be none. Obviously, you are her estate administrator according to her Will, your job is to distribute the money to all her children according the detail of her Will. In general, there will be no tax impact on all of you who are inheriting. You do not even need to report that, because, in theory, Uncle Sam already gets the share from estate tax return. Roberta – Gift exclusion is used to reduce the total estate (assets). Gift tax return (Form 709) is required only during her life-time. These are estate planning techniques before a person passes away.

When your mother passed away, the value of her total assets was fixed. Such estate, including money in banks, value of her house, and other investments, will be subject to estate tax (Form 706). For 2009, if her total estate is less than $3.5 million, the estate tax due should be none.

Obviously, you are her estate administrator according to her Will, your job is to distribute the money to all her children according the detail of her Will. In general, there will be no tax impact on all of you who are inheriting. You do not even need to report that, because, in theory, Uncle Sam already gets the share from estate tax return.

]]> By: Roberta http://askmattcpa.com/2009/10/gift-tax-exclusion/comment-page-1/#comment-97 Roberta Mon, 30 Nov 2009 19:59:39 +0000 http://askmattcpa.com/2009/10/gift-tax-exclusion/#comment-97 I am trying to understand this exclusion. My mother passed away and all her assets were bank accounts where I am joint owner. Her will divides assets equally among all children. My lawyer says it is all mine to do with whatever I want. I want to distribute the money but it is much more than the $13000 allowed. How can I do this? Can I just give it to them or should I try to do it over seveal years? If I give them it all do I fill out a gift tax form and hope the IRS doesn't come after me? I am trying to understand this exclusion. My mother passed away and all her assets were bank accounts where I am joint owner. Her will divides assets equally among all children. My lawyer says it is all mine to do with whatever I want. I want to distribute the money but it is much more than the $13000 allowed. How can I do this? Can I just give it to them or should I try to do it over seveal years? If I give them it all do I fill out a gift tax form and hope the IRS doesn’t come after me?

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