M
Mz.Ellie
Guest
CALIFORNIA - Our friend's dad died in April. There is no surviving spouse.
There are 4 sons, but Pete (always closest to the dad) was made joint on the bank account, years ago.
There was no real property - only 2 things to deal with: the car and the bank account (approx. $120,000.)
The car was jointly titled between dad and another son, David, who took the car when the dad died.
All monetary assets were liquid, in a single bank account, that was joint between the dad and Pete.
Pete waited about 3 months, closed the joint account, and moved the money to his own account.
Pete understands himself to be the rightful, sole owner of the $120,000 but would like to divide the money, equally, between himself and his siblings. The problem he sees is the Gift Tax, which limits to $10,000 per individual per year.
His understanding is that there's really no "estate" or "inheritance" here -- because there were only 2 things of value (the car & the bank account) and BOTH of them were JOINTLY owned between the dad and a son (for several years before their dad died).
Since Pete has never given any "gifts" to anyone before, does the "lifetime credit against taxable gifts and estate" allow him to gift the money in one big lump, WITHOUT having to pay any gift tax? Thanks for your help.
There are 4 sons, but Pete (always closest to the dad) was made joint on the bank account, years ago.
There was no real property - only 2 things to deal with: the car and the bank account (approx. $120,000.)
The car was jointly titled between dad and another son, David, who took the car when the dad died.
All monetary assets were liquid, in a single bank account, that was joint between the dad and Pete.
Pete waited about 3 months, closed the joint account, and moved the money to his own account.
Pete understands himself to be the rightful, sole owner of the $120,000 but would like to divide the money, equally, between himself and his siblings. The problem he sees is the Gift Tax, which limits to $10,000 per individual per year.
His understanding is that there's really no "estate" or "inheritance" here -- because there were only 2 things of value (the car & the bank account) and BOTH of them were JOINTLY owned between the dad and a son (for several years before their dad died).
Since Pete has never given any "gifts" to anyone before, does the "lifetime credit against taxable gifts and estate" allow him to gift the money in one big lump, WITHOUT having to pay any gift tax? Thanks for your help.