What is the name of your state (only U.S. law)? Texas
My grandmother recently sold a property and wants to gift each of her children $120k. Since their is an annual exclusion on gifts of only $13k, my mother wants to set up a joint account with me, my sister, and her husband to funnel $60k for the next two years where she can withdraw money. She would be the only person withdrawing this money.
This seems HIGHLY illegal to me and I want clarrification that it is or isn't.
I've done some research but would like a clearcut answer to my situation. I know that there is a $1 million dollar lifetime exclusion on gift taxes. Could my grandmother just gift my mother the full $120k without her having to pay taxes? Also, would this eat into her estate?
Thanks!
My grandmother recently sold a property and wants to gift each of her children $120k. Since their is an annual exclusion on gifts of only $13k, my mother wants to set up a joint account with me, my sister, and her husband to funnel $60k for the next two years where she can withdraw money. She would be the only person withdrawing this money.
This seems HIGHLY illegal to me and I want clarrification that it is or isn't.
I've done some research but would like a clearcut answer to my situation. I know that there is a $1 million dollar lifetime exclusion on gift taxes. Could my grandmother just gift my mother the full $120k without her having to pay taxes? Also, would this eat into her estate?
Thanks!