annual "gift" exclusion

[bingybear]

so... my ramblings are useful? hope so. follow the rules and use them to do the best you can.

[ivinsfan]

Quote:

Originally Posted by packrat44 I went into the Washington State tax site and they do not have a "gift" tax. Therefore, DW and I could gift to our daughter above the Fed exclusion and file the appropriate paperwork each year. We have no expectation of ever reaching the Fed estate tax exclusion as it is posted today. However, Wa State does a look-back for 3 years prior to death and any amount of gifting above the Fed gift exclusion is added back into the Wa State estate value for tax purposes. Sounds fair enough. Just do not wait until near end-of-life to make any heavy gifting.

That's good news and I hope that no matter how much you like your DIL you consider just giving your DS and DD the same amount of money and filing the returns as needed, especially since you aren't going to pay federal estate tax.
Stuff happens and a check with her name on it marked gift, is hers and hers alone..then again, aside from funding a Roth, I'm not a big fan of gifting "extra" money to adult kids as I worry it leads to lifestyle inflation and other issues.We have state tax estate issues too and haven't even considered this path.

I'm a little confused about your "gift tax" comment, the returns just keep track of the extra money you give above the ceiling and add it to your estate total.

[Gill]

Quote:

Originally Posted by bingybear not sure about this.... can you set up a trust to make up the difference? not sure is funding a irrevocable trust for the benefit of your daughter would count as a gift to her. Just grabbing at straws.

Oh yes it would be a gift to the daughter and also not very practical with smaller amounts.
Bruce