Talk of The Villages Florida - View Single Post - Consequences of handing out inheritance prior to death?
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Old 04-07-2024, 07:11 AM
retiredguy123 retiredguy123 is offline
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Quote:
Originally Posted by Janie123 View Post
If she has 3 people she wants to split the estate with, she can arrange her accounts plus house into fairly equal parts, then add each person to one account as a beneficiary. Any account including checking and savings can have beneficiaries including the deed of the house. This would keep these accounts out of probate court and avoid state estate/inheritance taxes.In PA my brother and I paid 4.5% when my mom passed. All states are different. This is PA rules:

4.5% for transfers to direct descendants (lineal heirs), 12% for transfers to siblings, and 15% for transfers to other heirs

I got all this info from Dean and Dean here in TV.

BTW, giving the $300k to each prior to her death, she will pay regular income tax on the full value… not a good idea. Consult a family law attorney…
Again, when you give money to someone, there is no income tax owed by either the giver or the receiver.