Source
r/legaladvice•
Traummich

[NE+NC+SC]How to give large sum of inheritance to family without massive taxes

Long story short: My mother is in NC and is very sick. For reasons I won't disclose I will be giving back all the money she stole from my father through the years, and the numbers will be very high.

I currently live in NE. I have looked up the laws and NC seems to be that you can give someone up to 14,999 as a gift every year without the receiver having to claim it in taxes. However, for the entire inheritance amount, I will have to claim it on my taxes. I am not experienced in understanding law, but this is not my first resource, I tried to figure things out on my own before coming here.

Is there another way to return my father's money faster and did I read the law correctly?

Sorry this is vague but this is as detailed as I wish to get but I can provide more info.

I will reside in NE for at least one more year before I move to SC.

Posted May 9, 2019, 4:10 PM UTC

19
Arudin88Quality Contributor•

Neither NC, NE, nor SC have gift taxes, it's just federal

After the $15k annual exemption, you can dig into your lifetime exemption, currently sitting at $11.4 million. You just have to file a form

7
Internet_GhostQuality Contributor•

Why would you even transfer money at before her death? NC has no estate tax and the federal estate tax exemption is $11.4 million. Unless your mother has over 11.4 million dollars in her estate, you won't pay taxes on it. You might have to pay a portion of that to probate the estate, but I doubt that payment will have a greater impact than trying to gift that money to you.

3
Arudin88Quality Contributor•

I'm guessing OP's parents are divorced. So OP would have to inherit and then give the money (digging into their own exemption) for their father to get anything

2
[deleted]•

[deleted]

1
TraummichOP•

I am waiting until she dies she is close to death

1
DirectGoose•

I'm not sure I'm following this correctly. Are you inheriting the money from your mother and then giving it to your father?

2
TraummichOP•

Yes, once she dies I will be giving my father his money back

2
DirectGoose•

Okay. You have a lifetime estate/gift tax exemption of $11.4 million. This means that if you want to give your father more than $15,000 per year, you can give him up to $11.4 million with no tax due, but you have to report it to the IRS and it will reduce your total exemption by that amount.

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If this amount is anywhere near $11.4 million, or you think your future estate will be worth that much, you should consult an estate planning/tax attorney.

3
[deleted]•

[deleted]

1
TraummichOP•

When she is dead I am her only family

1
cleveraccountname13•

Recipients are NEVER taxed on inheritances at the federal level. Maybe but most likely not at the state or local tax level.

Massive estates pay tax, but that is paid by the estate, not the recipient.

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