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I want to establish an irrevocable trust to include my

Customer Question
ownership of mineral rights and...
I want to establish an irrevocable trust to include my ownership of mineral rights and my house payments that I receive from owner financing the sale of my home.
What are my tax obligations regarding this trust?
Will I be taxed on the market value of the house and mineral rights
?
I receive monthly house payments and the outstanding balance on the house is $65000.
My mineral rights have a market value of $6000.
Submitted: 2 years ago.Category: Tax
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2/14/2016
Tax Professional: Richard, Tax Attorney replied 2 years ago
Richard
Richard, Tax Attorney
Category: Tax
Satisfied Customers: 57,219
Experience: 29 years of experience as a tax, real estate, and business attorney.
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Hi. My name is ***** ***** I look forward to helping you.

You will not have any tax consequences of transferring your assets to this trust. This irrevocable trust is a separate and distinct entity and this transfer to the trust will be considered a gift to the trust. 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 $5,450,000 lifetime exemption....which means a person can give a cumulative amount of up to $5,430,000 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 $5,450,000.

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