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Richard, Attorney
Category: Business Law
Satisfied Customers: 55301
Experience:  32 years of experience practicing law and a businessman.
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My Dad transferred his assets into an irrevocable trust. Are

Resolved Question:

My Dad transferred his assets into an irrevocable trust. Are the initial assets that were transfered taxable as income?
Submitted: 6 years ago.
Category: Business Law
Expert:  Richard replied 6 years ago.

Good afternoon. The transfer of the assets was not an income taxable event. The transfer is deemed a gift and may or may not have resulted in a gift tax depending upon the value of the assets transferred.



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The information given here is not legal advice. As all states have different intricacies in their laws, the information given is general only. This communication does not establish an attorney-client relationship with you. I hope this answer has been helpful to you.

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Customer: replied 6 years ago.
In Texas how much can qualify under the gift tax?
Expert:  Richard replied 6 years ago.
Texas has no gift's a Federal issue. There is a annual gift exclusion ... currently $13,000 per person per year, plus a $1,000,000 lifetime gift exemption so if the assets were within these amounts, there would be no gift tax.
Customer: replied 6 years ago.

The assets are close to 1,000,000.00 and the trust has two Co-trustees. how does taht work.

Expert:  Richard replied 6 years ago.
It depends upon the beneficiaries, not the trustees. But, as long as the assets are under $1,000,000, there would be no gift tax.

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