bots2019
Recycles dryer sheets
- Joined
- May 16, 2007
- Messages
- 128
Does anyone have experience or an understanding of the methods for tax efficiently transitioning assets to family members? I am already aware of the annual gifting exemptions (currently 12k) and lifetime gift exemption (currently $1M, but reduces estate exemption at death). Specifically, are there trusts or other methods that can be employed?
Also, I’m curious if anyone knows of any restrictions on how the annual gift exemption can be used. My understanding is that any person can give any other person a gift up to the exemption amount without any taxes being incurred. Are there any regulations against ‘pass-thru’ gifting? For example, if person A wants to pass as much money to person B as possible, couldn’t person A pass 12k to person B, and 12k to person C who then would pass it to person B? Obviously, person C would be under no obligation to pass the money to person B, so it seems you’d have to trust them, but it seems that this type of approach must be legal?
Also, I’m curious if anyone knows of any restrictions on how the annual gift exemption can be used. My understanding is that any person can give any other person a gift up to the exemption amount without any taxes being incurred. Are there any regulations against ‘pass-thru’ gifting? For example, if person A wants to pass as much money to person B as possible, couldn’t person A pass 12k to person B, and 12k to person C who then would pass it to person B? Obviously, person C would be under no obligation to pass the money to person B, so it seems you’d have to trust them, but it seems that this type of approach must be legal?