Inheritance tax

[Grayson]

Its very easy to do. Just have him go to title office and tell them to deed half to each one.
The only issue is to make sure each one knows where their half is. There is a lot of land tied up because people cant agree which part is theirs. The only way to sell it is both agree to sell and split money. If you can't get all parties to agree then you are stuck.

Oh, of course it is "very easy" to deed land. But is it advisable? What's the land worth? WHEN was it acquired? What's the size of the gross estate? How are the assets held? Is there a spouse? What lifetime gifts have been given in excess of the annual exemption amount? Have gift tax returns been filed on those gifts?

In other words, how can you possibly give this advice (twice!) without knowing more facts? You can't, of course.

Again: the gentleman needs to meet with an estate planning attorney and his CPA and financial advisor and hash out what plan is in his best interests and in the best interests of his heirs (if this is a consideration).

[JeffJ]

Its very easy to do. Just have him go to title office and tell them to deed half to each one.
The only issue is to make sure each one knows where their half is. There is a lot of land tied up because people cant agree which part is theirs. The only way to sell it is both agree to sell and split money. If you can't get all parties to agree then you are stuck.

You know how many families have lost farms and ranches by doing this? Tons.

[bphillips]

Please only follow TBH advice that says meet with an attorney first

[Krivoman]

Remember, the 5 million is based on per person. So it is 5 million for you, 5 million for your aunt etc...

[MikeyG]

Oh, of course it is "very easy" to deed land. But is it advisable? What's the land worth? WHEN was it acquired? What's the size of the gross estate? How are the assets held? Is there a spouse? What lifetime gifts have been given in excess of the annual exemption amount? Have gift tax returns been filed on those gifts?



In other words, how can you possibly give this advice (twice!) without knowing more facts? You can't, of course.



Again: the gentleman needs to meet with an estate planning attorney and his CPA and financial advisor and hash out what plan is in his best interests and in the best interests of his heirs (if this is a consideration).

THIS! I'm sitting for the CFP board exam in 12 days and these were the questions running through my head.

[Grayson]

Remember, the 5 million is based on per person. So it is 5 million for you, 5 million for your aunt etc...

If you're implying that grandfather can devise up to the estate tax exemption amount (currently $5.45 mil) per person, that's not correct.

[Be10dwn]

Pfft just go to legal zoom,they'll get you straightened out. I kid I kid. Don't do that. That's terrible advice. Grayson is the one person in here that I know does estate planning as an attorney. I'd listen to him. If that doesn't work and they have to file bankruptcy because they went to legal zoom and now you owe a bunch of taxes, come to me. I can help you out [emoji1]

[Krivoman]

Grandfather's does not set tax. Once he dies it is based of what an individual gets. Not a group. So if property is divided in 2 then the tax is based on what that one person inherits. Just went through this very thing with attorney and will.

[Grayson]

Is it possible that the attorney advised you to prorate the estate taxes based on the share each person inherited (assuming the shares were not equivalent)? This would be a reasonable distribution of the tax hit, but the estate is taxed, not the individual.

[Ironman]

Pfft just go to legal zoom,they'll get you straightened out. I kid I kid. Don't do that. That's terrible advice. Grayson is the one person in here that I know does estate planning as an attorney. I'd listen to him. If that doesn't work and they have to file bankruptcy because they went to legal zoom and now you owe a bunch of taxes, come to me. I can help you out [emoji1]

Lol. That's funny!

[Engine Co. 29]

Just handled my Mother's estate about three years ago, and what the attorney is telling you is correct. No inheritance tax for anything less than 5 Million.

[mdmorrow]

Get an good estate attorney to help you. I've been working extensively with a firm on my assets for the last 3 years and you're asking for trouble if you push ahead blindly. 5ish mil indexed is correct but there might be some lifetime gifts or something that could affect the basis. Get a lawyer to deal with it. Cost you a little and will buy you a boat load of peace of mind and savings when the time comes. I see estate problems all the time as I'm in the funeral home business and get to hear about some of the trouble people get into. It'll all be gravy though if we can get us a flat tax and abolish the estate tax.

[2B4Him]

Grandfather's does not set tax. Once he dies it is based of what an individual gets. Not a group. So if property is divided in 2 then the tax is based on what that one person inherits. Just went through this very thing with attorney and will.

This is not true.
There is no 'inheritance' tax. The tax is imposed on the person/entity making the gift (the estate in the case of a death) and is based on total value of property being given.

[BrandonH]

This is not true.
There is no 'inheritance' tax. The tax is imposed on the person/entity making the gift (the estate in the case of a death) and is based on total value of property being given.

This is the way I always understood it, but I'm far from an expert.

[Atfulldraw]

This is the way I always understood it, but I'm far from an expert.

oh...don't you worry

it doesn't stop some around here from repeating bad/wrong/incorrect/stupid information....

talk to an attorney