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Thomas McJD
Thomas McJD, Attorney
Category: Estate Law
Satisfied Customers: 3170
Experience:  Wills, Trusts, Probate & other Estate Matters
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We have an irrevocable trust that has 2 properties in it.

Customer Question

Hello, we have an irrevocable trust that has 2 properties in it. We'd like to transfer (give) one of the properties (professionally appraised at $330K) to our son. Should it be sold to him for a "nominal" fee or can it be gifted to him? If gifted, can it be done in one transaction or spread out over several years due to gifting limits? If he gets it for a nominal fee or gifted, will he have a large tax liability in the future if he sells the property due to capital gains?
Submitted: 11 months ago.
Category: Estate Law
Expert:  Maverick replied 11 months ago.

Welcome! My name is Maverick. Please give me a few minutes to analyze and/or research your inquiry and I will be back.

Expert:  Maverick replied 11 months ago.

Generally, distributions to beneficiaries of an irrevocable trust are taxable to beneficiaries at ordinary income tax rates. You question is more complicated than it appears and will require some additional research.