Legal Question in Wills and Trusts in Iowa
gift tax
My parents had a trust for when they passed away. My dad passed away 3 yrs ago. My parents owned 2 farms clare. This past spring, my mother broke the trust to allow one of my brothers to buy the farm she is living on with him, the other farm is gave to another one of my brothers. This farm is approximatley 180 acres. Does my brother have to pay gift tax on this farm?
1 Answer from Attorneys
Re: gift tax
Normally the recipient of a gift does not pay any gift tax, as that tax is on the donor of the gift. However, the IRS can assert its Gift Tax Lien against the property that is the subject of the gift.
This gift may not be subject to gift tax. The parties involved should consult with their tax advisors to determine what tax reporting obligations they may be subject to.
Your question also does not present sufficient facts as to why you are raising these questions. If you are concerned with what has transpired, you should consult with your own attorney who is experienced in these matters.
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