I am sorry to hear about your step dad's ailing health.
As far as the gift situation, tax would not be an issue here. Under current regulations
, each individual
is allowed to give up to $1 million in their lifetime in gifts before any gift tax
would be due. They are also allowed to give annual gifts to any one individual of up to $13,000 with no reporting
If your step dad gives any one person more than $13,000 in the same year, then he would need to report the gift by filing Form
709 which is a gift tax return
. No tax would be due with the form if he had not already exceed his $1 million lifetime limit, but it would be a reporting requirement.
And yes, this would simplify matters for you rather than having to settle the estate.
The only thing you would want to avoid is having him actually give you a gift of property
, such as a home. The reason for that is that you would retain the same basis in the home as his basis when you receive property as a gift. If instead you inherit property, you receive a stepped up basis, meaning your new basis is the fair market value of the property or home on the day you inherit it. This would mean less taxable gain
at the time you sell the property.
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