My father wants to leave me the value of some property he is selling ($90,000), and since it's all he owns and he was going to leave me the property in his will anyway, he says it's inheritance and we know people who have left their children inheritance while they're still alive. So my question is, how would we claim this as inheritance and not a 'gift' under the IRS? Do we need to fill out a form? Does he have to be dead for this to take affect? Is there a limit on how much you can claim as inheritance?!
2007-10-08 06:47:03 · 4 answers · asked by hrgirl1701 4 in Business & Finance ➔ Taxes ➔ United States
You can't inherit from someone who is still alive. If he gives it to you now, it's a gift - he'd have to fill out a gift tax return, although he wouldn't owe any money as a gift tax, and your basis will be what his is if and when you sell it. If he leaves it to you in his will, then it doesn't take effect until he dies, but your basis becomes the value at that time.
No limit on inheritances, but there's a limit where over than you'd pay tax, but it's $2 million now so you're well below that.
2007-10-08 07:35:01 · answer #1 · answered by Judy 7 · 2⤊ 0⤋
Because there is no will, the estate will go to probate court. You have the right to fight for what you believe you are entitled. Technichally, the estate will go to the closest living relative. You need an attourney who works with wills. You have no rights until you can establish them with the use of a lawyer. There is a radio show by a guy named Bruce Williams, he can put you in touch with someone reputable in your area. Remember that the laws are different in each state.
2016-05-19 00:22:46 · answer #2 · answered by jan 3 · 0⤊ 0⤋
Have your father and you set up a "Trust Fund." While he is
"still living of sound mind and body."
That way, when he dies, you won't have to pay "Inheritance
Tax" on it because, having the Trust Fund. You already own it
with your father.
Talk to a legal advisor or your tax man.
Yes, you will need to fill out a form with your lawyer, and it has
to be witnessed by others "not related" to eliminate the
"conflict of Interest."
$90,000 thousand dollars sounds like a lot, but if it's not
invested wisely. "It will be gone." <}:-})
2007-10-08 07:12:08 · answer #3 · answered by Anonymous · 0⤊ 6⤋
You DON'T. An inheritance IS a gift under US tax law.
2007-10-08 06:59:51 · answer #4 · answered by STEVEN F 7 · 1⤊ 4⤋