Have a Tax Question? Ask a Tax Expert
Welcome! My goal is to do my very best to understand your situation and to provide a full and complete answer for you.
Good morning. There should be no tax consequences on this. The donee is not subject to gift taxes. And, unless we're talking about a huge gift amount, it's not likely to result in any tax on your parents. Each donor, and your mom and dad are each considered a donor, can give $13,000 per year per person under the annualgift exclusion. In addition to that, each person has a $5,120,000 lifetimeexemption....which means a person can give a cumulative amount of up to $5,120,000in gifts without incurring gift tax....the donor must file a gift tax return tolet the IRS know how much of the lifetime exemption is being used, but therewill be no gift tax until cumulative gifts have exceeded the $5,120,000.
Thank you somuch for allowing me to help you with your questions. I've done my best to provide information whichwill be helpful to you. If I have notfully addressed your questions or if you have any follow up questions, or if Ihave misinterpreted your questions in any way, please do not rate me yet, but simply ask a follow up question without rating soI can provide you with a fully satisfactory answer. If I have fully answered yourquestion(s) to your satisfaction, I would appreciate you rating my service with 3, 4, or 5faces/stars so I can receive credit for helping you today. I thank you in advance for taking the time toprovide me a positive rating!
Hi, I am concerned about the tax implications for being the recipient of the trust. Thank you.