Estate Law Questions? Ask an Estate Lawyer.
Hi, I will be happy to assist you, and it is my goal to make you a very satisfied customer! This may take a few minutes, so thanks for your patience.
There are no US estate or other tax consequences to you. He made a gift to you and that is a taxable gift under US gift tax rules. His estate would owe those gift taxes unless it uses part of his estates $5.25 million estate and gift tax exemption amount. US estate and gift taxes won't affect anything unless the estate size (plus the amount of the gift) are worth more than $5.25 million.
Thank you! I understand.
1. His estate is probably $20 million USD
2. The initial loan did come from his trust because all his funds are in this trust, but he forgave it while he was still living. Isn
Isn't the tax burden on his trust fro the gift, not against me?
Yes, the tax burden is on the trust, not you. You have no tax issues. His estate has those issues. As long as the gift was properly recorded and any changes were properly made to his trust (leaving you a devise/bequest) prior to his death, then the only thing you'll have to to is wait for his estate to resolve the US estate and gift tax (and other tax) matters prior to receiving any portion of his trust that he left for you.
Thank you very much!
You're very welcome. I would be grateful if you could leave me a positive rating for my assistance. Thanks so much and have a great day!
I will definitely. BTW, the rest of the bequest that comes to me after the gift is taxable to me and at what rate?
No, inheritance is not taxable as income under US laws.
Just let me know if you need anything else. You can leave that positive rating by clicking one of the happy faces (the 3d, 4th, or 5th one). Thanks again!
DISCLAIMER: Answers from Experts on JustAnswer are not substitutes for the advice of an attorney. JustAnswer is a public forum and questions and responses are not private or confidential or protected by the attorney-client privilege. The Expert above is not your attorney, and the response above is not legal advice. You should not read this response to propose specific action or address specific circumstances, but only to give you a sense of general principles of law that might affect the situation you describe. Application of these general principles to particular circumstances must be done by a lawyer who has spoken with you in confidence, learned all relevant information, and explored various options. Before acting on these general principles, you should hire a lawyer licensed to practice law in the jurisdiction to which your question pertains.
The responses above are from individual Experts, not JustAnswer. The site and services are provided “as is”. To view the verified credential of an Expert, click on the “Verified” symbol in the Expert’s profile. This site is not for emergency questions which should be directed immediately by telephone or in-person to qualified professionals. Please carefully read the Terms of Service (last updated February 8, 2012).