Legal Question in Wills and Trusts in California

Re: inheritance money

She can give $24,000 per year, $12,000 to each with no gift tax consequences at all. She can give twice that if she wants to give to the spouses as well. If she gives before the 31st of December, she can give the same amount on January 2.

If she gives more than that in 07 or 08, she uses up a portion of her estate and gift tax exemption amount, which after 2011 will be $1,000,000 So if she give $100,000 more, she will still have $900,000 she can give without any taxes. There is a move afoot in Congress to raise the #1,000,000 that may well pass, perhaps going as high as $5,000,000.

It doesn't matter who she makes a gift to, family members, friends, or strangers, except gifts to qualified charities don't count at all.

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Re: inheritance money

your wife should retain an attorney to advise regarding these questions in detail as they apply to her specfic situation and plans. i assume that the estate of her grandmother is already being handled by an attorney. if not, this may also be necessary.