I understand most about the estate law federally and the max exempt amount each year, etc. and about gifting each year.
But I have a couple questions. let's say that next year the death tax exempt amt is 3.5 mil.
Let's say,(and I don't expect it to happen), but my father passes one. is that 3.5 mil per parent to leave? I.e. If he went next year and left his estate to me, would 3.5 mil of his estate be tax exempt for me? and then when mom passes she leaves her estate to me is that 3.5 mil of hers that is tax exempt?
Just wondering as I saw an example on the net, where 2 parents bought their child a car, for, let's say, 50000 dollars. it said that the 12k per parent was considered gifting that year. which left 26k. So instead of taxing that amount, it was counted against each of the parents lifetime exempt amount to that child,another words, 13k of the 26 counted agasint the mother's lifetime max of whatever it was, 3.5 mil in this case and 13 against the father's 3.5mil for that child. So that got me thinking if the max amount is per parent, then My parents could put in their will to each leave me their respective estate(which is what they want to happen...but they refuse to believe that they can't just will it to me out right and that there are taxes that way, over the max amount). So I am trying to find out the best way and least taxable way to go about this and if it is 3.5 mil per then that would be the best way to do it in the will.
But that leads to another question. IF that is trued then why can't they each just gift me their portion of the farm and it count toward their max lifetime amt to will me?
Hope this makes sense...advice would be appreciated..thanks..t
But I have a couple questions. let's say that next year the death tax exempt amt is 3.5 mil.
Let's say,(and I don't expect it to happen), but my father passes one. is that 3.5 mil per parent to leave? I.e. If he went next year and left his estate to me, would 3.5 mil of his estate be tax exempt for me? and then when mom passes she leaves her estate to me is that 3.5 mil of hers that is tax exempt?
Just wondering as I saw an example on the net, where 2 parents bought their child a car, for, let's say, 50000 dollars. it said that the 12k per parent was considered gifting that year. which left 26k. So instead of taxing that amount, it was counted against each of the parents lifetime exempt amount to that child,another words, 13k of the 26 counted agasint the mother's lifetime max of whatever it was, 3.5 mil in this case and 13 against the father's 3.5mil for that child. So that got me thinking if the max amount is per parent, then My parents could put in their will to each leave me their respective estate(which is what they want to happen...but they refuse to believe that they can't just will it to me out right and that there are taxes that way, over the max amount). So I am trying to find out the best way and least taxable way to go about this and if it is 3.5 mil per then that would be the best way to do it in the will.
But that leads to another question. IF that is trued then why can't they each just gift me their portion of the farm and it count toward their max lifetime amt to will me?
Hope this makes sense...advice would be appreciated..thanks..t
