Legal Question in Wills and Trusts in New Mexico

when to divide money of elder parent

My wifes mother has $200,000 in CD's that she wants to distribute evenly among her 4 adult children. Is it better for her to give them this money now, before she dies, or leave it until she dies and divide it evenly in her will? She wants to make sure each child gets the money without paying alot of tax. She has no debts; her home is owned free and clear and will be sold (according to her will)... and that money will also be distributed evenly among the 4 children upon her death. But, what should be done with the $200,000 in CD's now?

Thank you, Terry


Asked on 11/22/04, 2:52 pm

2 Answers from Attorneys
Douglas Barr The Barr Law Firm, P.C.

Re: when to divide money of elder parent

If her Estate only consists of the $200K, then she will not owe estate taxes. But, if she owns any real estate, including her home, then she needs to take other action to protect her estate from a possible probate. More information is needed to give a complete analysis.

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Answered on 11/24/04, 1:38 pm
Charles Aspinwall Charles S. Aspinwall, J.D., LLC

Re: when to divide money of elder parent

The lifetime gift tax exemption for individuals is $1 million. The yearly 'freebie' amount which does not reduce the exemption is $11,000.00. Depending upon how much she has given before now, she has the lifetime exemption less the cumulative total of previous gifts, if any.

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Answered on 11/22/04, 3:53 pm


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