joetaxpayer wrote:
> 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.
And a cost for annual preparation of a trust tax return (even though the
trust income may be pass-through to the beneficiary).
Even worse is the fact that the [beneficiary of the trust] / [recipient
of gift] will most likely *have* taxable income each year, over which
they have no control.
I saw one client who was actually not very happy that her personal
income taxes were being pushed into higher brackets each year due to a
trust set up by her still-living parents, not to mention her spouse's
reaction (which I can only guess at). All of the downside, with none of
the benefit.
-Mark Bole
--
Mark Bole
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