Talk of The Villages Florida - Rentals, Entertainment & More
Talk of The Villages Florida - Rentals, Entertainment & More
#16
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I appreciate the information about the basis step ups, that would be very important. She has promised she would speak with her CPA. I envy her position, but glad I don't have to make her decisions. |
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#17
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"No one is more hated than he who speaks the truth." Plato “To argue with a person who has renounced the use of reason is like administering medicine to the dead.” Thomas Paine |
#19
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The official name is the "Unified gift and estate tax". Gifts are made before death and your estate is the amount left over after death. But, it is all included into one tax liability. The $18,000 annual exclusion only applies to gifts made while you are alive. But, you can gift more than $18,000 per recipient as long as you don't exceed the total estate tax exclusion during your life, which is currently $13.61 million. |
#20
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My first thought when I read the question is whether this giveaway is being suggested by the heirs.
For those who have reached a point where they have money to give away, they can always give away some for certain circumstances like helping with a down payment on a house or buying a car or making a dent in a grandchild’s tuition or kicking in for a remodeling project. It is nice to see your money work for those you love, but I would NOT just hand it all over. Besides, a million is not what it used to be. Go slow on this one. Line up the ducks. Boomer
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Pogo was right. Last edited by Boomer; 04-07-2024 at 01:01 AM. |
#21
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As I remember from when I worked in a private school, she can pay the tuition for a grandchild (or great grandchild) and it does not affect any gift tax limits, as long as it is paid directly to the school.
Also, she can gift $18,000 to a child and another $18,000 to the child’s spouse annually. |
#22
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I worked with someone whose father is on medicaid for dementia. His father lived with the colleague in his home. Medicaid paid for his living expenses, but he was not in a nursing home or anything like that. Too many pre conceived notions about certain outcomes. Now he didn't have a million, but he lived as normal a life as he was able to do whatever he wanted while living in his nephews house. People who put all their money in medicaid untouchable trusts, certain types of irrevocable trusts, are also eligible for medicaid support. What the decision comes down to is: how do you value your money? how do you think/feel about not depending upon it but give it to family members who can use it productively when they need it more than you do? How long do you think you will live and how do you think you will die? (impossible to answer but worth a try) If you can't live by yourself, are you counting on your offspring to take care of you? If not, who is going to take care of you? My parents saved most of theirs and seldom helped out any family members with money. My wife's parents gave away most of their money to their children to use when the parents didn't need the money. Everyone is different, and there is no one right answer, there are scenarios to plan for or not if you choose. Interesting discussion for sure to listen to different responses on how people think about the future, and the future is always uncertain, sometime more uncertain than at other times. |
#23
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Ask a 100 of us and get 100 different answers.
Go get a legal answer, advice, and any documents that might be needed, from Amy Pittman at Pittman Law right around the corner in nearby Oxford.
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Gratitude! The daily practice of finding at least 3 things to be grateful about makes for a happier life. |
#25
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discussing and acting are two independent activities, both or just one can happen. . and if you read carefully, the OP isn't going to spend his money on other people's problems. |
#26
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Look though I'm sure the information you have been given on the site is with good intention and maybe helpful.
But I would strongly suggest you go to your attorney and/or your accountant if you have either or both. The situation you are in is common here in The Villages. |
#27
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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… |
#28
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An inheritance tax is imposed upon the receivers of inheritance after distribution. An estate tax is imposed upon the value of the descendent's assets prior to distribution. States that currently impose an inheritance tax include: Iowa Kentucky. Maryland. Nebraska. New Jersey. Pennsylvania. MA has an estate tax above $2M, raised from $1M last year. That's why many people have retired to FL, to avoid taxes . . FL has no estate taxes of which I am aware |
#30
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