Recieved 38,000 from father

[scott100678]

What is the name of your state? TN

My father just sold his house in Alabama. He split the money with my siblings and I received $38,000.

What should I do to avoid any gift or inheritance taxes?

Would it be better to place the money into joint account w/ rights of survivorship with my father?

Any advice will be appreciated

 

[anteater]

What should I do to avoid any gift or inheritance taxes?

Your father has not passed away. Therfore it is not an inheritance. As the receiver of the gift, you have no tax-related consequences or reporting obligations. Your father can gift $12,000 annually to as many individuals as he likes with no IRS reporting requirements. Above that amount to any one individual in any one year, he does have to file a gift tax return with the IRS. However, each taxpayer has a $1M lifetime exclusion for reportable gifts. You can search for "gift tax" on this forum to find more info. Or take a look at Form 709 and Instructions at the IRS site:

http://www.irs.gov/pub/irs-pdf/f709.pdf

Would it be better to place the money into joint account w/ rights of survivorship with my father?

I don't see any particular advantage to that. If he wants you to have the money now, take it.

 

[Some Random Guy]

Your father gave you the money - so HE would be responsible for paying gift taxes. He is not dead, so nobody needs to pay inheritance taxes.

Any gifts over $12,000 per year are subject to gift tax. However, there are exclusions for education and a lifetime exclusion of $1,000,000 which could eliminate that tax.

Read the IRS publication on the subject http://www.irs.gov/pub/irs-pdf/p950.pdf