Legal Question in Real Estate Law in Massachusetts

Massachusetts does not have a gift tax. Your wife's father can give each of his children $14,000 without having to file a gift tax return. So the first $42,000 is free. If each of his children is married then he can give another $14,000 to each of their spouses. If your mother's father is married then he and his wife can each give $14,000. One option is to make a partial gift now and another one after the first of the year, assuming his health is good.

As to paying a Federal Gift tax any gifts greater than the $14,000 exemption are subject to federal gift tax, but your father-in-law can give use part of his estate tax credit which exempts the first $5.4 Million of gifts or estate tax. So unless your father-in-law has an estate greater than $5.4 Million whether the gifts are taxable or not, he is not likely to have to pay any gift taxes or estate taxes.

MA Estate tax does not kick in until the estate is more than $1 Million. Please feel free to call me if you have more questions without obligation.