Legal Question in Wills and Trusts in California

Re: Loosing Grandma

There are no income tax consequences as a result of a gift. There is a requirement for a gift tax return when a gift exceeds 10,000 per donee. In other words, if there are 4 gifts of 10,000 each thhere would not be any return requiement. Even if there was, there would be no tax because each individual in 2000-01 has a 675,000 exemption before any tax results, Assuming your grandmother hasn't used it up, there would be no tax consequences. If the assets were appreciated assets, those other than cash with a higher fair market value, it would probably not be wise to make a gift but hold on as there is an increase in basis at death.