Accumulate Annual Gift??

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K72
Posts: 38
Joined: Wed Dec 05, 2018 8:04 pm

Accumulate Annual Gift??

Post by K72 » Thu Oct 31, 2019 1:51 pm

I plan to gift some $ to my child within the next few years for a specific purpose. Until that time arrives, can I "somehow" accumulate annual gifts (up to the maximum allowed by IRS rules) in an account in my name (perhaps with child as beneficiary) until such time that the intended event happens, then transfer the total? Is something like this permitted by IRS rules?

oldfatguy
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Joined: Tue Feb 27, 2018 1:38 pm

Re: Accumulate Annual Gift??

Post by oldfatguy » Thu Oct 31, 2019 1:55 pm

It isn't a gift yet as long as it is in your name.

jebmke
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Joined: Thu Apr 05, 2007 2:44 pm

Re: Accumulate Annual Gift??

Post by jebmke » Thu Oct 31, 2019 1:55 pm

you can give money to your children whenever you want to. Making a mental accounting doesn't get you around the gift tax/reporting requirements, if any.
When you discover that you are riding a dead horse, the best strategy is to dismount.

MotoTrojan
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Re: Accumulate Annual Gift??

Post by MotoTrojan » Thu Oct 31, 2019 1:58 pm

Do they know about this purpose or is it a secret accumulation?

Are you likely to pass-on enough to hit the estate tax? If not you could just file out the appropriate forms and give them all at once without any tax consequences.

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HueyLD
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Re: Accumulate Annual Gift??

Post by HueyLD » Thu Oct 31, 2019 2:07 pm

K72 wrote:
Thu Oct 31, 2019 1:51 pm
I plan to gift some $ to my child within the next few years for a specific purpose. Until that time arrives, can I "somehow" accumulate annual gifts (up to the maximum allowed by IRS rules) in an account in my name (perhaps with child as beneficiary) until such time that the intended event happens, then transfer the total? Is something like this permitted by IRS rules?
Do you plan to give more than $11.2 million (or $22.4 M if married) to your child?

If not, you have no gift tax to worry about except that you may have to fill out the gift tax form. But filing an informational tax form is not the same as paying taxes.

increment
Posts: 188
Joined: Tue May 15, 2018 2:20 pm

Re: Accumulate Annual Gift??

Post by increment » Thu Oct 31, 2019 2:11 pm

HueyLD wrote:
Thu Oct 31, 2019 2:07 pm
Do you plan to give more than $11.2 million (or $22.4 M if married)
... including what you leave as inheritance, over your lifetime, to all recipients (excepting your spouse)?

billfromct
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Joined: Tue Dec 03, 2013 9:05 am

Re: Accumulate Annual Gift??

Post by billfromct » Thu Oct 31, 2019 2:24 pm

There may be estate/gift tax issues if your state has an estate tax.

I believe Massachusetts has the lowest estate tax exemption of $1M.

Several other states have estate tax exemptions of $2M-$4M.

Check "the Google" to see if your state has an estate tax.

bill

Gill
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Joined: Sun Mar 04, 2007 8:38 pm
Location: Florida

Re: Accumulate Annual Gift??

Post by Gill » Thu Oct 31, 2019 3:56 pm

Quite simply, no you can't. You can't attempt to make a completed gift while still retaining control over the property given.
Gill
Cost basis is redundant. One has a basis in an investment | One advises and gives advice | One should follow the principle of investing one's principal

kaneohe
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Re: Accumulate Annual Gift??

Post by kaneohe » Fri Nov 01, 2019 8:19 am

Gill wrote:
Thu Oct 31, 2019 3:56 pm
Quite simply, no you can't. You can't attempt to make a completed gift while still retaining control over the property given.
Gill
529 plan?

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