Legal Question in Wills and Trusts in Florida

inheritance given early

My Aunt, who is in an elder home and slightly senial, left me a diamond ring in her will (her will was executed many years ago when she was completely healthy). My grandfather, the executor of the will, gave me the ring. He thought that since I was going to receive it when my Aunt passes, that it was okay to give it to me now.

Is this okay or when the will goes into probate are there going to be any problems down the road? Is my grandfather going to be held liable for anything?

I want to sell the ring and invest the money. If i do will this cause any problems with probate?


Asked on 12/03/05, 9:12 pm

1 Answer from Attorneys
Richard S. Stolker Uptown Law, LLC

Re: inheritance given early

The answer to your question depends largely on the value of the ring. If one of your grandparents made a gift to you having a value of less than $11,000, and assuming your grandparent made no other gifts to you during the current year, it would be exempt from tax (it qualifies for the annual gift exclusion). If the gift is from BOTH grandparents, the amount of the annual gift exclusion is $22,000.

If the ring is valued at more than those amounts, you would be well advised to consult an attorney as to the tax treatment of the ring.

Assuming that the ring was intended as a gift during your grandmother's lifetime (which is what your facts imply), the gift was complete when it was given to you, and you have the right to sell it. However, you would be responsible to pay tax on any capital gain. The tax would be on any increase in value over what your grandparents paid for the ring, and the amount you receive when you sell it. It would be wise to consult an accountant or tax attorney before you sell the ring.

I hope this is helpful. If you need further assistance, you are welcome to contact me.

Richard S. Stolker

301 294 9500

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Answered on 12/05/05, 10:11 am


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