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Would you wait until 2011 to gift money away (no gift/estate tax 2011)

Topic closed. 22 replies. Last post 10 years ago by pigsNtrees.

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Would you wait until 2011 to gift money away (no gift/estate tax 2011)

Yes. That was my plan. [ 2 ]  [11.11%]
No, they should be able to get it now regardless. [ 9 ]  [50.00%]
Let them decide (but they pay taxes if now). [ 4 ]  [22.22%]
Undecided [ 3 ]  [16.67%]
Total Valid Votes [ 18 ]  
Discarded Votes [ 2 ]  
tntea's avatar - Lottery-059.jpg

United States
Member #5344
June 30, 2004
23641 Posts
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Posted: March 18, 2007, 6:40 pm - IP Logged

If I had won millions  and I wanted to give money to my children or grand children it would be very simple.

Draw out the cash and hand it to them.

I do it now but on a small scale. real small ROFL

My money and I will do as I da*** well please with it.

I am in that boat too....  My children have access to my bank account..

lol

     OLD/Vtrac   Lottery Bible         Double Warnings      Thumbs Up TN F34/F44

    justxploring's avatar - villiarna
    Wandering Aimlessly
    United States
    Member #25360
    November 5, 2005
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    Posted: March 18, 2007, 6:48 pm - IP Logged

    Sorry, tntea.  That's what I figured.  It really was none of my business.  It's just that I get the impression from your posts that your family is very important to you and a very big part of your life.  That's why your first comment surprised me. 

    I don't think children should be brought up to be lazy and not work for a living, but providing a good education, medical care and helping someone you love get a head start in life if you have tons of dough would be a great feeling.  I never cared about a fancy wedding, but I know my sister paid a small fortune for her daughter's wedding and it wasn't even that big. If it's important to someone, I think it's nice to give that once in a lifetime gift (well you hope it's a once in a lifetime gift! lol)  When I was 23 someone asked me, after I announced my intention to marry, "Where are you registered?"  I answered "At the Dept of Motor Vehicles."

      tntea's avatar - Lottery-059.jpg

      United States
      Member #5344
      June 30, 2004
      23641 Posts
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      Posted: March 18, 2007, 7:23 pm - IP Logged

      Sorry, tntea.  That's what I figured.  It really was none of my business.  It's just that I get the impression from your posts that your family is very important to you and a very big part of your life.  That's why your first comment surprised me. 

      I don't think children should be brought up to be lazy and not work for a living, but providing a good education, medical care and helping someone you love get a head start in life if you have tons of dough would be a great feeling.  I never cared about a fancy wedding, but I know my sister paid a small fortune for her daughter's wedding and it wasn't even that big. If it's important to someone, I think it's nice to give that once in a lifetime gift (well you hope it's a once in a lifetime gift! lol)  When I was 23 someone asked me, after I announced my intention to marry, "Where are you registered?"  I answered "At the Dept of Motor Vehicles."

      LOL...  could have said at the Ford dealership and see if you and your hubby got a new vehicle or two...lol

       

      My family is very important to me.  I wouldn't worry about gift taxes with a huge jackpot...

      I do worry about education though... especially for today's generation. It is not so much as the reading , writing and arithmetic as the important of decision making..

      We have so many lazy young kids this day in time.. And for those that do work.. they live for the minute and put nothing back for the immediate future not to mention long term... And the children having children before they are stable...

      Geeh.. I could go on and on...

      I had my first child a month before I turned 17...However, I was more mature then raising my son than these 22 year old today raising a puppy..

           OLD/Vtrac   Lottery Bible         Double Warnings      Thumbs Up TN F34/F44

        emilyg's avatar - cat anm.gif

        United States
        Member #14
        November 9, 2001
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        Posted: March 18, 2007, 7:29 pm - IP Logged

        If I had won millions  and I wanted to give money to my children or grand children it would be very simple.

        Draw out the cash and hand it to them.

        I do it now but on a small scale. real small ROFL

        My money and I will do as I da*** well please with it.

        Yep.  Do it now, too.  With great pleasure.

        love to nibble those micey feet.

         

                                     

          justxploring's avatar - villiarna
          Wandering Aimlessly
          United States
          Member #25360
          November 5, 2005
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          Posted: March 18, 2007, 7:32 pm - IP Logged

          Yep.  Do it now, too.  With great pleasure.

          Adopt me please!  I don't eat too much.  LOL   Smiley

            emilyg's avatar - cat anm.gif

            United States
            Member #14
            November 9, 2001
            31337 Posts
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            Posted: March 18, 2007, 7:40 pm - IP Logged

            Adopt me please!  I don't eat too much.  LOL   Smiley

            will call attorney first thing in the morning  lol

            love to nibble those micey feet.

             

                                         

              MegaWinner's avatar - Lottery-029.jpg
              New Jersey
              United States
              Member #50273
              March 3, 2007
              348 Posts
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              Posted: March 18, 2007, 11:07 pm - IP Logged

              Where are you getting this information?  The estate tax law is changing in 2010.  AFAIK, the gift tax will not be repealed, but I might be wrong.  They are 2 different things. Anyway, you can give much more than the $12,000 allowable in one year by applying the unified tax credit, so you must be talking about an awful lot of money at once. Even if you exceed the $12,000 limit annually, the excess is applied toward your lifetime gift tax exclusion.  So if you know 10 people you plan to help, they can each receive a lot of money, up to $100,000.  Just make sure you file the correct forms like a 709.

              My answer would be none of the above choices.  Of course I would get legal advice, but I wouldn't make people suffer because of it. Depends on how urgent the need is. Most people I know would benefit greatly by receiving an extra $12,000 a year, so I don't think waiting would be a problem.  The tax exemption law allows a person to also pay for health insurance premiums and necessary medical procedures.  So there really isn't anyone I know who would suffer for another few years. 

              It would take too long to list, but gift tax isn't paid as often as some people here seem to think. There are many ways of paying people without breaking the law.  For example, let's say I give $12,000 to a friend or relative who needs money because she is unemployed.  This will not have any effect on the unemployment compensation she receives. If that isn't enough to make ends meet, I can hire her as a secretary, caretaker, dog sitter (whatever) and pay her a reasonable salary. If she is a single parent, I can also pay her child $12,000, plus cover medical expenses & education. 

              The choices you list above sound as if the winner is on a power trip.  "Do it my way or suffer the consequences."  A good tax consultant can help you make these important decisions.  Anyway, I will apologize if I am incorrect, but I think you are misreading the tax laws.

              This is what I got from reading several IRS info related websites.  I thought it said that just for 2011, the Gift/Estate tax will be nothing for that year.

              "The choices you list above sound as if the winner is on a power trip.  "Do it my way or suffer the consequences."  A good tax consultant can help you make these important decisions.  Anyway, I will apologize if I am incorrect, but I think you are misreading the tax laws."

              No no no lol!  You misunderstood me.  I base that off of not wanting to give unecessary amounts of money to the IRS when I don't have to.  I also base this off of people on my share list saying they want to take their share now, blow a large sum of it, and come back to me for more with a sobb story saying they should have waited and could I just give them some more money.  (I know the people of my "Share list" EXTREMELY well and can predict with a accuracy that they some of them will do this.) 

              "It would take too long to list, but gift tax isn't paid as often as some people here seem to think. There are many ways of paying people without breaking the law.  For example, let's say I give $12,000 to a friend or relative who needs money because she is unemployed.  This will not have any effect on the unemployment compensation she receives. If that isn't enough to make ends meet, I can hire her as a secretary, caretaker, dog sitter (whatever) and pay her a reasonable salary. If she is a single parent, I can also pay her child $12,000, plus cover medical expenses & education."

              This is based off giving the people on my share list $2-5 million each.  With that amount, the gift tax has to be taken into account.  But I did fail to mention that the people on my share list, if they opt to wait till 2011, I would hire them as personal assistants (really doing absolutely nothing) with high salaries until 2011 ($75,000 each).  That was part of my plan.  And that $75k wouldn't come out of their share.  I would have set aside an amount to cover their salaries.

              I am far from a control freak.  I am pretty neutral and always consider other's opinions.  With my wife, we both provide input on all matters and we both agree on what is best.  However, sometimes she has a better idea and we will go with that and sometimes its the other way around. 

                pigsNtrees's avatar - pigsNtrees
                Mallorn trees of Lothlorien
                United States
                Member #26084
                November 14, 2005
                199 Posts
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                Posted: March 20, 2007, 7:04 pm - IP Logged

                My money, my decision, if, when and who will share.

                Quando Porca Volare!

                drunk hobbit