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Good afternoon. 1) If they withdraw money from a non-retirement
investment account, the withdrawal will not result in any taxation
. 2) There should be no gift tax
consequences of the gift to you. Recipients of gifts are not subject to gift tax. And, there should also be no gift tax due from the donor. Each donor can give $14,000 per year per person under the annual gift exclusion. In addition to that, for any amounts in excess of the $14,000 in a year, each person has a $5,250,000 lifetime exemption....which means a person can give a cumulative amount of up to $5,250,000 in gifts over and above the $14,000 annual gift exclusion amount without incurring gift tax....the donor must file a gift tax return
to let the IRS
know how much of the lifetime exemption is being used, but there will be no gift tax until cumulative additional gifts have exceeded the $5,250,000. 3) There is really no need to do that unless you are worried about needing Medicaid at some point; in that event, you are probably wise to sell them the house for the money owed and then they can either lease it back to you or simply allow you to live there.
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