Taxes on a Monetary Gift

What is the name of your state? Florida

My widowed mother recently sold her home in New York for $325,000 and is planning to distribute the money from the sale of the house to my brother and I as a gift. My share (to me and my husband) will be approximately $125,000, and I live in Florida. The sale of the house took place at the end of 2002 (December 20). My mother has not yet made a distribution of the money, but is planning to do so soon. What are the tax laws regarding a gift distribution such as this? Is there a limit per year to the amount of money that can be given per person before a tax needs to be paid on it? If so, since we are just two weeks into 2003, would it be possible for some type of extension to be granted so that she could now give a gift for 2002?

The recipient does not pay tax on the gift. The donor must file a gift tax return if the amount given is over $11,000 to any one person. However, the donor will not actually pay any gift tax unless the total gifts during her lifetime are over $1,000,000. The best way for her to proceed is to give everyone whatever she wants them to have, then file form 706. On the form, she declares that everyone inthe family is receiving $11,000, with the rest going to whichever member of the family is her child. ($11k to your husband, $11k to each kid, $11k to you, the rest to you.)