Locator: 51011TAXES.
Note / disclaimer: this is not a tax site. There is no professional advice being provided on this page. If you read something that appears to be wrong, it probably is. If this information is important to you, go to a professional. I'm not a professional.
Exactly what we are doing. Our two adult grandchildren (one college-age, one just out of college), need reliable automobiles now, not when they're another twenty years old.
From the linked article:
A recent Wall Street Journal article showed that older Americans have $110 trillion in wealth, more than any other group. Because they’re living longer, they aren’t passing all of that down to younger generations just yet.
But many affluent baby boomers told us they are regularly giving their kids and grandkids smaller financial gifts now, while they’re still around to watch younger generations enjoy it. It’s not enough to show up in the big-picture wealth data, but it still makes a meaningful difference in the lives of the recipients. The great wealth transfer might be on hold, but the great wealth trickle is well under way.
Parents told us they are spending money to help their adult children with child care, rent, down payments for homes and vacations. Still, it’s not always so straightforward. They have to choose whether to give financial gifts to all their children equally, or to parcel it out based on who has the greatest needs. They also must decide whether to attach any strings to their gifts and where to draw the line.
Like the boomer generation overall, the givers tend to be better off than their own parents were, but they aren’t necessarily rich. Many told us it felt wrong to hold on to their money when their children and grandchildren were grappling with high costs.
By the way, federal inheritance taxes don't exist, and federal estate taxes won't affect me, they probably don't affect you, and if they do, you need a new financial advisor / tax accountant.
State inheritance / state estate taxes? It's your choice where you live. Several wonderful states with no income tax: some, but not limited to -- Tennessee, Florida, Texas, Nevada, although I could be wrong on specifics. This is not a tax site.
Recommend: Gemini query -- the states with highest inheritance and estate taxes. One might be surprised.
With all the money in the world why do the three Buffett children live in Nebraska (daughter), New York state (Peter), and Illinois (Howard)?
The federal lifetime gift and estate tax exemption is $15 million per individual. Recipients do not need to be biological heirs. You can gift this amount to anyone—such as friends or non-blood relatives—during your lifetime or leave it to them at death.
And, then, of course, there are charitable gifts.
IRS wants the forms but the IRS doesn't necessarily get the money. Timing is incredibly important. Giving property away the day before you die counts against your lifetime giving exemption but disposing of your property as a TOD does not. Again, I could be wrong on this. This is not a tax site.
Community property states: nine.
Again, IRS forms are important but if one has cooperating heirs this whole issue is moot. Again, I could be wrong on this. This is not a tax site.
