What is the name of your state (only U.S. law)? NC
Ok…I have a tax question I have run by a couple CPA’s and I can’t get an answer to...any input would be appreciated.
My grandmother died in September, 2008 and one of her assets was a non-qualified deferred annuity worth about $70k. It had a $50k basis – so about $20k of taxable gains. The named beneficiary was her daughter (my aunt). However, she didn’t need/want the money so she gave it to her father (my grandfather).
Here are my questions:
1) Will my aunt need to complete a gift tax return for 2008 because she in effect gifted this money to her father
2) Is there any way she could transfer it in a way where he pays the income tax on the money rather than her – he is in a lower tax bracket.
The bottom line is this…my grandfather should have been the beneficiary in the first place through some oversight it was left to my aunt. They would like to figure out how to unwind this whole thing now (which I realize is probably hard to do after death) and make it as if he was the beneficiary in the first place.
Any thoughts on how to handle this would be appreciated.
Ok…I have a tax question I have run by a couple CPA’s and I can’t get an answer to...any input would be appreciated.
My grandmother died in September, 2008 and one of her assets was a non-qualified deferred annuity worth about $70k. It had a $50k basis – so about $20k of taxable gains. The named beneficiary was her daughter (my aunt). However, she didn’t need/want the money so she gave it to her father (my grandfather).
Here are my questions:
1) Will my aunt need to complete a gift tax return for 2008 because she in effect gifted this money to her father
2) Is there any way she could transfer it in a way where he pays the income tax on the money rather than her – he is in a lower tax bracket.
The bottom line is this…my grandfather should have been the beneficiary in the first place through some oversight it was left to my aunt. They would like to figure out how to unwind this whole thing now (which I realize is probably hard to do after death) and make it as if he was the beneficiary in the first place.
Any thoughts on how to handle this would be appreciated.