Discussion:Inheritance tax for kids
From TaxAlmanac
| Revision as of 02:56, 19 October 2009 KathiJud (Talk | contribs) (Receiving a gift) ← Previous diff |
Current revision Dennis (Talk | contribs) (Never? Suggest) |
||
| Line 19: | Line 19: | ||
| Doesn't sound like your divorced father has enough assets to pass along to worry about any such taxes.}} | Doesn't sound like your divorced father has enough assets to pass along to worry about any such taxes.}} | ||
| + | |||
| + | {{ForumReplyPost|UserID=Dennis|Date=19 October 2009|Text=Never? Suggest research into transferee liability...♫}} | ||
Current revision
Discussion Forum Index --> Advanced Tax Questions --> Inheritance tax for kids
Discussion Forum Index --> Tax Questions --> Inheritance tax for kids
Schenckdmm (talk|edits) said: | 19 October 2009 |
| A divorced father (in Missouri) of ten children has ten bank CDs worth about $20,000 each. Each child is a beneficiary of one of the CDs. He is about to pass away and hss nothing else of value except a vehicle. The way I understand the rule is he can give $13,000 to each child without a tax consequence at the Federal level. Not sure about Missouri yet.
What I am not sure of is will the unified credit allow him to pass the other $7000 without a tax consequence to dad's estate or the children? The only other gifting done was $6000 to each child last year so he has not used up all the unified credit yet. Am I correct in thinking the children will not owe taxes on the amounts they receive as beneficiaries? Thanks for any help. Jim | |
| 19 October 2009 | |
| Receiving a gift or inheritance never causes the recipient to owe tax unless the asset is something like an IRA or 401(k) balance etc. Those accounts contain funds never subjected to income tax.
It is the person who gives the gift or passes the assets at death that owes any gift or estate taxes. Doesn't sound like your divorced father has enough assets to pass along to worry about any such taxes. | |
