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Law Educator, Esq.
Law Educator, Esq., Attorney
Category: Estate Law
Satisfied Customers: 111605
Experience:  Experienced in Trust and Succession Law, including Louisiana Laws
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Parents of two adult sons. Selling some property in Decatur

Customer Question

Parents of two adult sons. Selling some property in Decatur County Indiana. Want to divide the sale of the property with both sons. Want to know the best way to go about this without being taxed to death. Neither of the boys names are ***** ***** deed only ours. They basically need to pay off some of their debt with their money. The oldest son has two children and would maybe like to put some of the money back for their college savings. Would sure appreciate some sound advice on how to go about this. Thank you so much!
Submitted: 6 months ago.
Category: Estate Law
Expert:  Law Educator, Esq. replied 6 months ago.

Thank you for your question. I look forward to working with you to provide you the information you are seeking for educational purposes only.

You would not be taxed to death if you want to give them a gift. Under the tax laws, you may give them a gift each year of up to $14,000, which is not taxed. Furthermore, there is a $5.45 Million lifetime gift tax exemption. So if you choose to gift them the money, it would not cause you or them to pay taxes on your gift.

Customer: replied 6 months ago.
Only 14,000 per year is the amount allowed?
Expert:  Law Educator, Esq. replied 6 months ago.

Thank you for your reply.

Under the annual gift $14,000 is allowed, but again anything over that would go towards your lifetime gift exemption up to $5.45 million.