Is giving away an inheritance legal?

[Kenni]

What is the name of your state (only U.S. law)? Utah
My boyfriend received a large inheritance from his grandmother that he hasn't totally claimed yet. Is he allowed to put all of it into my name, and will either of us get nailed on taxes? And if he did give it all to me, half of it wouldn't go to his wife (they are seperated and both want a divorce), right?

 

[Farfalla]

What is the name of your state (only U.S. law)? Utah
My boyfriend received a large inheritance from his grandmother that he hasn't totally claimed yet. Is he allowed to put all of it into my name, and will either of us get nailed on taxes? And if he did give it all to me, half of it wouldn't go to his wife (they are seperated and both want a divorce), right?

Inheretance is not part of marital property.... as long as he does not mix it with joint funds. So there is no need for the cat and mouse game you are suggesting here.

You are getting an interesting insight into your boyfriend. What he does to his wife today will most likely do to you when the two of you breakup. (The vast majority of extramarital affairs end with in a year or so of the divorce.)

You would be best to stay out of their marital affairs and their finances. While this move is not necessary, if you start helping him hide assets you could end up in legal trouble.

It is legal for him to give away his inheretance. And if he does this it's yours.. and he'd have no control over it. However, it would be a two step process. First he has to accept the inheretance. Secondly he would have to give it to you. Each transaction would have potential issues with taxation and with the divorce.

As for taxes, that depends on several things.... you can start doing some research here....
IRS web site on the topic
http://www.irs.gov/faqs/faq-kw91.html

 

[Kenni]

Thanks!
I was trying to research it by myself last night but I just kept running into UK laws

 

[Farfalla]

Thanks!
I was trying to research it by myself last night but I just kept running into UK laws

How do you think a 'give away' would work? He cannot substitute your name as an heir. So the funds would first pass to him. Than he would give them to you. Both transactions have potential tax implications. Both leave a paper trail.

The purpose of this is to hide it from his wife right? Why would he need to do that if his wife has no claim to the inheretance?

 

[Kenni]

Well, he doesn't want it in his name anymore, and the reason he isn't divorced from his wife is because she just...disappeared- for a while. And now that he tracked her down, he doesn't want her trying to claim the inheritance. There's more behind it too, but there's no need to air dirty laundry even if no names are attatched.
It was just a thought, but if she can't claim it anyway there is no need to give it away. As for the taxes, I won't have enough to pay for them out of pocket, so if they froze mine/his assets, we would both be screwed. That's really my only concern. Thanks again for helping, and sorry it took me days to respond.

 

[Farfalla]

Well, he doesn't want it in his name anymore, and the reason he isn't divorced from his wife is because she just...disappeared- for a while. And now that he tracked her down, he doesn't want her trying to claim the inheritance. There's more behind it too, but there's no need to air dirty laundry even if no names are attatched.
It was just a thought, but if she can't claim it anyway there is no need to give it away. As for the taxes, I won't have enough to pay for them out of pocket, so if they froze mine/his assets, we would both be screwed. That's really my only concern. Thanks again for helping, and sorry it took me days to respond.

Your first post was not clear that he already had the inheritance.

The taxes would be paid out of the inheritance.

When he got the inheritance, what account did he put it in? Was it one what had community (marital) money in it? If he did than she might have a claim to part of it.