How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Lev Your Own Question
Lev
Lev, Tax Advisor
Category: Tax
Satisfied Customers: 28084
Experience:  Taxes, Immigration, Labor Relations
870116
Type Your Tax Question Here...
Lev is online now
A new question is answered every 9 seconds

Can I leave 10'ooo.ooo.oo dollars to my wife and child

Customer Question

Can I leave 10'ooo.ooo.oo dollars to my wife and child without. Taxes.
Submitted: 1 year ago.
Category: Tax
Expert:  Lev replied 1 year ago.

Do you mean - to leave as a gift or as inheritance?

Customer: replied 1 year ago.
Inheritance
Customer: replied 1 year ago.
Are you still there??
Expert:  Lev replied 1 year ago.
For income tax purposes inheritance is not taxable income in the US regardless the amount - as a recipient of inheritance you do not need to claim it as income. There is no any amount limit. Please see for reference IRS publication 525 -
http://www.irs.gov/pub/irs-pdf/p525.pdf
Gifts and inheritances. In most cases, property you receive as a gift, bequest, or inheritance is not included in your income. However, if property you receive this way later produces income such as interest, dividends, or rents, that income is taxable to you.
.
However some states do have inheritance tax on the state level.
But there are neither inheritance nor estat etaxes in California.
.
On the other hand large estates (above $5M) might be subject to estate tax - that are paid by the estate - not by beneficiaries.
Basic exclusion for 2015 is $5,430,000
The value of the estate after exclusion and some deductions is subject to estate tax.
See here
http://www.irs.gov/pub/irs-pdf/i706.pdf
For rates - see page 5 Table A - so rates are from 18% to 40%
.
To avoid or reduce possible estate taxes - we need to plan so-called spent down estate.
During your lifetime - you may gift up to $14,000 annually to any person and unlimited gift to your spouse (assuming your spouse is an US citizen).
In additional - there is unlimited gifts in the form of tuition or medical expenses you pay for someone.
So far if carefully planned - you may avoid estate taxes .
.
In additional - you may use so-called A-B trust.
See this article about using A-B trust in your situation.
http://www.nolo.com/legal-encyclopedia/tax-saving-ab-trusts-29621.html
Let me know if you need any help.

Related Tax Questions