Legal Question in Tax Law in Texas

Gift Taxes

My father died recently and, as the executor, I am collecting all the money from his estate and insurance in a bank account under my name. When all the money is in, I plan to disburse the money to myself and my three siblings. The resulting amount should not amount to more than $22,000 per person. Can I disburse this amount to each sibling without being liable for gift taxes? As a married person living in a community property state, will this ''gift'' be considered a gift from both my husband and me or just as a gift from me? If it is just from me, then can I only ''gift'' $11,000 to my siblings?


Asked on 5/10/05, 7:45 pm

1 Answer from Attorneys
Barbara Lamar Law Office of Barbara Lamar

Re: Gift Taxes

A distribution from your father's estate normally would not be considered a gift from you. However, if you were the sole beneficiary on your father's insurance policies, and if your name was on his bank accounts, then the money is legally yours, so when you distribute it to your siblings, it will be a gift. Gift tax law says you can give $11,000 per beneficiary per donor. So if you and your husband both own the money you're distributing, then you could give $22,000 to each sibling, gift-tax exempt. However, gifts and inheritances are considered separate property under Texas law, so you would need to take certain steps to convert the money to community property. A person can give lifetime non-exempt gifts up to $1,000,000 without paying tax, but if non-exempt gifts are given, U.S. residents are required to file a gift tax return. Please feel free to consult me by phone at 210-223-9389 or by private email at [email protected]

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Answered on 5/12/05, 6:40 am


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