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Posted by Bill on February 2, 2007, 7:37 pm
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someone@nowhere.com (Earl=A0Kiosterud) posted:
> May someone make a gift (up to $12K) to a
> beneficiary of his will (a fixed amount) with the
> agreement to lower the beneficiary's
> inheritance by the amount of the gift? In effect,
> it would be giving an advance on the
> inheritance. This would (1) let the beneficiary
> have some of the money sooner, (2) reduce
> the basis of the estate tax (unless such a gift
> doesn't get the $12K exemption). Is this
> permissible?
In fact, one can make a gift of $12K or less to any person,
with no reporting necessary, in 2007. However, the
specification that this is part of an "agreement" might
suggest there is collusion in an attempt to evade estate
taxes.
Might be better if you just forgot the idea of making your
gifts related to "advances" on an inheritance, and view them
as outright gifts to those you love.
If, in your own mind, you occasionally adjust the
allocations of your wills and/or trusts, because of an
individual's "worthiness" based on whatever arbitrary basis
you decide upon (including how much they've "dinged" you for
while you were alive) ... well that's between you, your God
and your family.
Bill
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Posted by Seth Breidbart on February 4, 2007, 2:05 am
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> In fact, one can make a gift of $12K or less to any person,
> with no reporting necessary, in 2007. However, the
> specification that this is part of an "agreement" might
> suggest there is collusion in an attempt to evade estate
> taxes.
How does that differ from the non-collusion method of
avoiding (not evading) estate taxes, by giving $12,000 to
each beneficiary yearly? I don't see where collusion enters
into anything.
Seth
<< ======================================================= >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2006) - All rights reserved. >>
<< ======================================================= >>
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Posted by Stuart A. Bronstein on February 2, 2007, 7:37 pm
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> May someone make a gift (up to $12K) to a beneficiary of his
> will (a fixed amount) with the agreement to lower the
> beneficiary's inheritance by the amount of the gift? In
> effect, it would be giving an advance on the inheritance.
> This would (1) let the beneficiary have some of the money
> sooner, (2) reduce the basis of the estate tax (unless such
> a gift doesn't get the $12K exemption). Is this
> permissible?
It's possible. But don't do it just by agreement - it may
not hold up legally. State your intention in your will or
trust.
Stu
<< ======================================================= >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2006) - All rights reserved. >>
<< ======================================================= >>
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Posted by Earl Kiosterud on February 2, 2007, 7:37 pm
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> May someone make a gift (up to $12K) to a beneficiary of his
> will (a fixed amount) with the agreement to lower the
> beneficiary's inheritance by the amount of the gift? In
> effect, it would be giving an advance on the inheritance.
> This would (1) let the beneficiary have some of the money
> sooner, (2) reduce the basis of the estate tax (unless such
> a gift doesn't get the $12K exemption). Is this
> permissible?
I need to add this. The idea is not to have to change the
will -- just get agreement from the beneficiary and leave
the will as is.
--
Earl Kiosterud
www.smokeylake.com
Moderator:
I am not an attorney, but this sounds like a codicil that
can be added to the will without an agreement from the
beneficiary. At worst, if the gifter dies within three
years (I believe) of the gift, the gift will be added back
into the estate. Otherwise I see no tax ramifications.
Talk to your attorney.
<< ======================================================= >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2006) - All rights reserved. >>
<< ======================================================= >>
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Posted by Stuart A. Bronstein on February 3, 2007, 2:14 am
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> I need to add this. The idea is not to have to change the
> will -- just get agreement from the beneficiary and leave
> the will as is.
>
> Moderator:
> I am not an attorney, but this sounds like a codicil that
> can be added to the will without an agreement from the
> beneficiary. At worst, if the gifter dies within three
> years (I believe) of the gift, the gift will be added back
> into the estate. Otherwise I see no tax ramifications.
> Talk to your attorney.
Yes a provision can be made in a will or codicile to do just
what the OP wants, without having to get the agreement of
any beneficiary.
Stu
<< ======================================================= >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2006) - All rights reserved. >>
<< ======================================================= >>
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