Legal Question in Wills and Trusts in New York
a gift of money
My father is in his 80's and has recently sold his house. He now stays in a rented apartment. He recently gave each of the children $10,000 as a gift. The rest of the money he put into an account for himself. How long does the money that was given the children have to be held in my account and can I spend it now. If something should happen to him would I have to give it back to the estate. I was told that I would have to hold it for 3 years.
2 Answers from Attorneys
Re: a gift of money
If it was a gift to you then it is yours to do with as you please.
Re: a gift of money
I generally agree with Norman, based upon the size of the gifts. There are instances, if there are potential death taxes due by the estate, where the taxing authority takes into account transfers made within 3 years of death, to determine the extent of death taxes due. But, since the tax rate never gets to 100%, there should be enough assets remaining in the estate to cover any taxes that might be payable. It is very rare that the remaining assets will not cover the taxes that might be due, and the taxing authority will seek payment from the asset recipient. Unless this might be the case, enjoy the gift and be sure to thank your father.
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