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Old 03-27-2017, 10:20 PM
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distributing inheritance

My wife is the sold beneficiary of her father's estate, mainly consisting of a mutual fund account. Her intention is to distribute this money to her siblings (there is no will or any other instructions from her father). For tax purposes, I would assume these distributions would be considered gifts, requiring her to observe the annual gift limitation of $14,000. Are we thinking correctly?



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Old 03-28-2017, 12:25 AM
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Originally Posted by markgoyler View Post
My wife is the sold beneficiary of her father's estate, mainly consisting of a mutual fund account. Her intention is to distribute this money to her siblings (there is no will or any other instructions from her father). For tax purposes, I would assume these distributions would be considered gifts, requiring her to observe the annual gift limitation of $14,000. Are we thinking correctly?
Correct; those distributions are gifts of your spouse ofr the donees; If you gave gifts to someone in 2016 totalling more than $14k (other than to your spouse), you need to file Form 709.



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Old 03-28-2017, 12:28 AM
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Originally Posted by markgoyler View Post
My wife is the sold beneficiary of her father's estate, mainly consisting of a mutual fund account. Her intention is to distribute this money to her siblings (there is no will or any other instructions from her father). For tax purposes, I would assume these distributions would be considered gifts, requiring her to observe the annual gift limitation of $28K. Are we thinking correctly?
however, Gift splitting allows a couple to donate a total of $26,000 before being taxed on the contribution



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