Legal Question in Wills and Trusts in North Carolina
Having a problem, my grandmother just passed away in April and she thought she was going to have more time then what she did so she couldnt change her will, in her last moments she spoke to all of us and one of the things she wanted was for my dad to share his cd with me and he agreed, my dad and I do not get along and have not spoken prior to this for 7 years, he is sending me the money in increments as a gift to avoid taxes, the total amount is 36,000 and he has sent me 12,000 already but I used the money to get out of debt and pay bills and he refuses to give me more right now because he thinks if he goes over the annual exclusion he will be taxed, im struggling and really need this money to go back to school and pay bills, I do work but its not enough to survive, I dont know what to do, although it was a verbal agreement between him and his mom its not in the will and I think hes wrong about the gift tax, do i have any options here, thank you.
1 Answer from Attorneys
I'm sorry for the loss of your grandmother, but if your grandmother did not put your name on the certificate of deposit or put this in her will, its generally not enforceable (it depends on which state she lived in at the time of her death). If she lived in North Carolina, it would only be enforceable if it was made before 2 competent witnesses who are not beneficiaries under the will.
Your father is correct. That is nice that he is willing to share the cd with you and honor your grandmother's wishes, but legally he does not have to give you anything. Under the tax laws, he can gift up $12,000 per year to any person. If you have a spouse, he could give $12,000 to and up to $12,000 to your spouse and not be taxed.
Any amounts over that will be taxed to him. I'm sorry that you are struggling, but given that he doesn't have to give you any money at all, I don't think you can complain. Since its a new year, if he gave $12,000 in 2011, then he can give another $12,000 in 2012 if he wishes.
You ought to have used the money for school. Things like credit card debts could wait.
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