Gifting Money to Family: Savvy Estate Planning
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- Äas pĆidĂĄn 13. 09. 2024
- Learn ways to give money as a gift, gifting money to family and gifting property before death, or transferring assets before death. đ Book a Call at www.cunningham... for estate planning, to learn how to gift money, and transferring assets before death.
Explore the intricacies of gifting money to family and effective estate planning! Dive into topics such as non-taxable gifts, outright gifts, and gifts in trust. Understand complex concepts like irrevocable grantor trusts, dynasty trusts, and private annuities. Discover smart strategies for transferring assets before death, including gifting money or gifting property before death. This webinar is an invaluable resource for anyone considering ways to give money as a gift and optimize their estate planning.
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Thank you for making these available, very interesting!
Our pleasure! Thanks for leaving a comment.
Question - I don''t quite understand the number you showed in "Gifts in Trust" at time 4:00 of the video. If the couple gives each of the 3 children the annual gift tax exemption, that's total of 6 times the annual gift tax exemptions. Plus, they can each gift the irrevocable trust up to annual gift tax exemption as well, right? That's another 2 times the annual gift tax exemptions. So together it should be 8 times, so why you show under "Total Gift" column as 6 times? My understanding is that people can gift to the irrevocable trust with their children being beneficiaries separate from gifting to children directly, am I correct?
No. The current gift tax exemption amount is $18K per person, per donee, whether outright or in the type of trust we described.
@@CunninghamLegal Hum... I searched this topic online and found "Crummey Powers ... in which the court ruled that the as long as a trust beneficiary has the right to withdraw a gift to a trust, the gift qualifies as a present interest gift and the annual gift tax exclusion will apply....", and "When you gift to an irrevocable trust, the gift must still be evaluated on a per donee basis. For the gift to qualify for the annual exclusion, each beneficiary must have a present interest in the gift. .."
Anyway, I could be wrong, but just for your reference. Thanks.
@@ericchen1205 Broadly speaking you are correct. One human can give another human up to $18K in 2024 and not have to file a gift tax return. A âCrummey Powerâ permits a gift to a trust and still qualify for the annual exemption. If one human gives another human $18,001, then a Form 709 Federal Gift Tax Return must be filed.
Another question - Irrevocable Grantor Trust - the video in time 10:30 says for Irrevocable Grantor Trust the assets are not part of the owner's estate".... I think that's not correct. According to IRS, the assets held in an irrevocable grantor trust generally remain included in the grantor's estate for estate tax purposes. So if the goal is to reduce estate tax, then one should set up Irrevocable Non-Grantor Trust, not Irrevocable Grantor Trust?
An irrevocable grantor trust can be written in a way to be excluded from a decedentâs gross estate. A grantor trust is ignored for INCOME tax purposes while the grantor is alive. It is not ignored for estate tax purposes. This can be an extremely valuable inter-generational wealth creation tool. Contact us if this is something you are interested in: www.cunninghamlegal.com/california-law-offices/contact/
Thatâs not exactly right about life insurance being tax free. My father had 2 life insurance policies. Neither had a beneficiary on them. So, guess what. They went into probate and were taxed.
We are sorry to hear that the life insurance went through probate and was taxed. Properly structured, life insurance can pass free of death taxes and probate. This is why itâs important to hire a savvy lawyer to get things right!
Is it better to gift a friend $700k or buy the house she wants ?
What I don't want it the government to come in one day and ask her. "Where did you get the $700 k in cash to buy this property? You make 50k a year"
maybe filling taxes under her lifetime gift tax free ?
The $700k taxes have already been paid on it.
I just remembered George Clooney announced he gave 13 friends one million and then IRS came around haha