Legal Question in Wills and Trusts in Texas

Re: Gifted Land

You can gift up to around $2,000,000 without triggering a taxible event. The 12,000 amount is the amount that doesn't generate the requirement of a gift tax return. What happens when you make a large gift is that you erode your estate tax exemption your heirs would have received at time of death. However, before making the gift, PLEASE go over this decision with your CPA because the property would have been INHERITED at a stepped-up basis which would avoid a chunk of capital gains at the time of sale. Your heir would lose this if you make the gift.

Re: Gifted Land

You can give up to $12,000 per person per year without incurring gift tax.

You may want to consider some other method other than outright gift if the land has increased substantially in value to where you may have a taxable (over $2.00 MM) estate or the gift tax may take a fair amount of money for acreage.