Post: Evading the gift tax
Posted by TaxNewbie on 6/22/09
My grandmother recently sold a property and wants to gift
each of her children $120k. Since their is an annual
exclusion on gifts of only $13k, my mother wants to set up
a joint account with me, my sister, and her husband to
funnel $60k for the next two years where she can withdraw
money. She would be the only person withdrawing this
This seems HIGHLY illegal to me and I want clarrification
that it is or isn't.
I've done some research but would like a clearcut answer
to my situation. I know that there is a $1 million dollar
lifetime exclusion on gift taxes. Could my grandmother
just gift my mother the full $120k without her having to
pay taxes? Also, would this eat into her estate?
Posts on this thread, including this one
- Evading the gift tax, 6/22/09, by TaxNewbie.