tex shalter wrote:
> Purely hypothetical. . . .
>
> Is there a way to pass on my $ 12,000 IRS yearly gift limit to my
children
> and not worry that their "first spouse" will end up with half of it if
> things don't work out.
It depends. You can arrange for a trust, this can be costly to set up
$2000-$3000 depending on the lawyer, and maybe a cost for the trustee.
You are then passing along the investment decisions to the trustee, and
not the child, although if the trustee is close to the family, they'll
work closely with you. If it's a truly disinterested third party, they
will follow 'prudent man' standards of investing which you may or may
not agree with. The child still needs to have access to the gift each
year, but can let it stay in the trust. If they are a minor, it's smoke
and mirrors, you sign the letter saying the money stays in the trust. It
they are an adult, they actually sign the right to the immediate money.
This is called a "Crummy Letter". If they want your continued gifts and
your ongoing love, they will sign.
Joe
www.blog.joetaxpayer.com
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