Estate from Canada

[SuperCoolDude]

Hello, If an estate is left to one person can they opt to deflect some of the funds to another w/o it becoming a "Gift"? My mother is the executrix and sole beneficiary of my uncle's estate and she wants to have the funds go to my sister and I instead of herself. Would we have to pay a gift tax on the funds or is there a way that we can receive the funds from the estate as an inheritance instead?

Thanks for any info! SCD

 

[FlyingRon]

US Law ONLY

 

[SuperCoolDude]

Actually it's not the fact that it's from Canada that's a problem it's the US tax ramifications that I want to know about. Basically, can an executor of a will (Who also happens to be the sole beneficiary) redirect funds to someone else w/o it counting as a gift. So the person that is receiving the funds is able to receive them as an inheritance rather than a gift. Thanks.

 

[Zigner]

Hello, If an estate is left to one person can they opt to deflect some of the funds to another w/o it becoming a "Gift"? My mother is the executrix and sole beneficiary of my uncle's estate and she wants to have the funds go to my sister and I instead of herself. Would we have to pay a gift tax on the funds or is there a way that we can receive the funds from the estate as an inheritance instead?

Thanks for any info! SCD

In the US, on the Federal level, the person receiving a gift doesn't pay tax.

 

[SuperCoolDude]

I thought there was a $13K per year limit on how much a person could receive as a gift tax free.

 

[Zigner]

I thought there was a $13K per year limit on how much a person could receive as a gift tax free.

Nope - in a nutshell, the $13,000 refers to the amount a person can give before being required to report it. Even then, tax may not be due. It's based on the individuals situation.

 

[FlyingRon]

And the gift tax filing requirement doesn't apply to those outside the US.
Depending on how much they send you, there may be a requirement to file as the recipient of such a gift ($100,000 if I remember correctly).