Legal Question in Wills and Trusts in Texas
Trust
My elderly father just had a new will and trust made. My mother is alive, but in a nursing home not capable of making decisions. My father is giving the kids so much a year to keep us from paying inheritance tax. I guess my question is-Do we have to pay inheritance tax on the amount given if he doesn't live 7 years after giving it to us and what is the largest amount of money that can be given by him before the estate has to pay inheritance tax. I keep getting conflicting answers. Is it 300,000.00, 1 million or what?
2 Answers from Attorneys
Re: Trust
These specifics should be answered by the attorney preparing the Trust, etc...but gift tax is paid by the donor.if any tax is owed..
Re: Trust
Are you talking about United States law? Sounds like you're referring to UK laws. Does your father live and reside in Texas? Currently, in the United States, you can give $12,000 per year per person without having to report or pay any gift tax with an exemption equivalent of $1,000,000. Currently, the estate tax exemption equivalent is $2,000,000. However, these laws are fairly complex and are very fact specific. Would need more facts to answer fully. Most attorneys will do an initial consultation for free. Have you asked the attorney who prepared your father's documents? Let me know if I can be of some assistance.
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