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, Tax Advisor
Category: Tax
Satisfied Customers: 29940
Experience:  Taxes, Immigration, Labor Relations
Type Your Tax Question Here...
Lev is online now
A new question is answered every 9 seconds

Can I leave 10' dollars to my wife and child

Customer Question

Can I leave 10' dollars to my wife and child without. Taxes.
Submitted: 2 years ago.
Category: Tax
Expert:  Lev replied 2 years ago.

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

Customer: replied 2 years ago.
Customer: replied 2 years ago.
Are you still there??
Expert:  Lev replied 2 years 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 -
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
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.
Let me know if you need any help.