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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.
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Hi, I am concerned about the tax implications for being the recipient of the trust. Thank you.