Where's my tax pros at? Personal gifting

[Dirty J]

My Mom has recently come into a bit of money following my father's death.

She's like to gift some cash to my, my wife and my child.

Some googling indicates that for 2018, she'd be allowed to gift upto $15,000/each tax free to me and my spouse.

Can anyone confirm thats correct?

I haven't really found a definitive answer for gifting to her grandson. Same rules/limits apply?

I have recommended that she contact a tax professional for advise, but she's got no existing relationship and I'm not sure where to direct her.

Any specific advice or a contact recommendation in Cobb county would be appreciated!

 

[roundhouse]

The way I understand it the current limit for tax free inheritance is a$5 million

She can gift up to $5 million with no tax implications

What you have to do if you want to gift more than $14k is file a form with the IRS stating that the amount over $14k is being officially subtracted from the $5 million inheritance limit
I don’t think the recipient has to be family


She could gift you $15k , your wife $15k and your child $15k each year with no paperwork

 

[LT5150]

The way I understand it She can gift up to $5 million with no tax implications

What you have to do if you want to gift more than $14k is file a form with the IRS stating that the amount over $14k is being officially subtracted from the $5 million inheritance limit

^^^^ this is correct

 

[Dirty J]

I am not speaking to her lifetime gifting allowance.

Im asking about the tax liability for the receiver of the funds.

Or am I not understanding and there will be a tax liability for the receiver?

 

[TapcoFan]

My Mom has recently come into a bit of money following my father's death.

She's like to gift some cash to my, my wife and my child.

Some googling indicates that for 2018, she'd be allowed to gift upto $15,000/each tax free to me and my spouse.

Can anyone confirm thats correct?

I haven't really found a definitive answer for gifting to her grandson. Same rules/limits apply?

I have recommended that she contact a tax professional for advise, but she's got no existing relationship and I'm not sure where to direct her.

Any specific advice or a contact recommendation in Cobb county would be appreciated!

You may want to be mindful about your filing status for gifts to you and your wife if you are filing jointly. The IRS treats married filing jointly tps as a single entity. I would make sure that the exclusion can actually apply to both you and your wife (assuming you don't file separately).
I don't think gifting $15K to her grandson would be an issue - the same rules apply as any other gift.
If the amount is larger, it might be worthwhile for her to set up a trust that makes annual distributions up to the limit of the exclusions to avoid imposing tax consequences upon the beneficiaries.

I am not a tax professional or anything like that, so the above is my personal view of what I would be concerned about in a gift situation. You could probably look up Section 102 of the Internal Revenue Code for guidance on gifts.

 

[Horsehat]

This is one of those cases where I would genuinely consider paying a tax professional a small fee for a few minutes of their time. As spot on as ODT members are on general health, marital, financial, legal, spiritual, excercise physiology, diet and weight loss, firearms, self protection, metallurgy, nuclear physics , chiropractic, genealogy, punctuation and grammar and a host of other subjects, taxes are a complicated matter, and , well, we can't be experts at everything.

 

[CPA9mm]

"PM sent"

 

[Greybeard]

The way I understand it the current limit for tax free inheritance is a$5 million

This is correct and was updated from 1.5 million.

She can gift up to $5 million with no tax implications

No,no,no,no. She or he can leave you a inheritance of this amount tax free, depending on state, death tax will still take away from this.

What you have to do if you want to gift more than $14k is file a form with the IRS stating that the amount over $14k is being officially subtracted from the $5 million inheritance limit
I don’t think the recipient has to be family
Correct.


She could gift you $15k , your wife $15k and your child $15k each year with no paperwork

Correct.
Any thing over this amount someone is responsible for the tax, either giver or receiver.

If any of her money is from ira, or insurance claims it passes directly to beneficiary, not in probate.

Within last several years lost two family members, but to be sure talk to attorney.