Discussion:Foreign gifts and stocks
From TaxAlmanac, A Free Online Resource for Tax Professionals
Note: You are using this website at your own risk, subject to our Disclaimer and Website Use and Contribution Terms.
From TaxAlmanac
Discussion Forum Index --> Tax Questions --> Foreign gifts and stocks
| 19 March 2007 | |
| If foreign person dies within 3 years of transfering stocks as a gift, will it be included in his estate? | |
| 20 March 2007 | |
| The US doesn't have one of these rules. Instead, tax is paid when the gift if made (if the value of the gift is greater than the lifetime and annual exclusions limits.
Annual exclusions: $12,000 per gift recipient per year: i.e., give your son and his wife $24,000 and it's all exempt. Lifetime exclusion: $60,000 if they are an NRA; but there are a few countries with treaty exemptions. If they are resident in the US, they may be allowed the US resident exemption. | |
| 20 March 2007 | |
| See Sec. 2035 - Adjustments for certain gifts made within three years of decent's death.
Generally, gifts made prior to death are outside the decedent's estate. There are some exceptions as specified in this code section. The main exception is the gift tax gross up (Sec. 2035(b)). I would not make the blanket statement that there is no 3 year rule in IRC. | |
| 21 March 2007 | |
| Many other countries have more inclusive rules than ours. like in the UK, you die within seven years of making a gift of any kind whatsoever, a portion of the value is added back to the estate, and 100% of the value is added back if you die within three years. The US exception covers extremely limited circumstances, not usually associated with a gift of stock. | |
| 21 March 2007 | |
| I am confuesd by Sec. 2035
If somebody makes a complete gift to a irovacable trust does the three years rule apply? | |
To join in on this discussion, you must first
log in.
