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My father made me his beneficiary using a benefit on death…

My father made me his...
My father made me his beneficiary using a benefit on death account. My understanding is this avoids any tax liability for me. I need to distribute the funds among my siblings. I expect the amount to be in excess of $14k per person and I want to make sure I don't incur gift tax liability. If my husband and I send the money from a joint account to my siblings, does this allow for double the gift $14K limit on gifts before the gift must be reported on our tax return? If not, can I send money up to $14K in December, and the rest in January to avoid tax issues?
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Answered in 1 minute by:
12/22/2017
Lane
Lane, JD, CFP, MBA, CRPS
Category: Tax
Satisfied Customers: 14,212
Experience: Law Degree, specialization in Tax Law and Corporate Law, CFP and MBA, Providing Financial & Tax advice since 1986
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Hi. My Lane’s Lane …

I hold a law degree (J.D.), with concentration in Tax Law, Estate law & Corporate law, an MBA in finance, a BBA, and CFP & CRPS (Chartered Retirement Plans Specialist) designations, as well - I’ve been providing financial, Social Security/Medicare, estate, corporate, non-profit, and tax advice to clients on three continents since 1986.

If you’ll please bear with me for a minute I’ll type up my initial response, and then we can go from there if you have further questions on this.

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Customer reply replied 5 months ago
Okay, thank you

The gift tax exclusion is $5,490,000 (increasing to twice that on Jan 1 2018 under the new tax bill that's now passed both houses of Congress).

...

The 14,000 is the amount that, if you give that or less, is COMPLETELY excluded from the gift tax system and no form 709 (gift tax form) is needed.

...

Gifts are NEVER taxable from an income tax perspective (https://www.law.cornell.edu/uscode/text/26/102)

...

And it's only when (using that form 709 to track gifts over 14,000) you have given over $5million that there is any tax.

...

Also, it's important to note that the the exclusion from gift tax(a transfer tax, paid by the giver) is a per donee per person limit ... meaning that you can give 14000 (to as many people as you'd like) before having to file that gift tax form (which again, is filed only to track against the lifetime exclusion).

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So if you want ReALLY to keep this simple, just give 14000 to each person before Dec 31 and then again after Dec 31 and you have to tax OR reporting to do.

...

Please let me know if you have ANY questions at all, before rating me.

If this has helped, and you DON’T have other questions … I'd appreciate a positive rating, using the stars on your screen, and then clicking “submit" (you may have to scroll up to see the stars, OR look to one side or the other if you’re on a device, such as a phone or tablet) – That’s the only way I’ll be credited for the work.

...

Lane

Lane
Lane, JD, CFP, MBA, CRPS
Category: Tax
Satisfied Customers: 14,212
Experience: Law Degree, specialization in Tax Law and Corporate Law, CFP and MBA, Providing Financial & Tax advice since 1986
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Lane
Lane
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Category: Tax
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Experience: Law Degree, specialization in Tax Law and Corporate Law, CFP and MBA, Providing Financial & Tax advice since 1986

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