Is this possible?

[wellywench 0]

Evening all!

My father in the UK has willed some money to my daughter (he's still alive though lol!) He offered to send it over here so that we could put it toward a house on the understanding that the money belongs to my daughter and not to me and my husband. No problem so far... my question is about tax. I believe in England if an estate is below £312,000 then no Inheritance Tax is payable, but the Gift Tax requirements here are a little confusing! I don't really want him to send it over if a big % of it will go in taxes - he worked hard for that money!

We're going to talk to H and R Block next week but I thought if anyone here knew anything about it I could get it straight in my head lol!

[Aubrey 10]

Evening all!

My father in the UK has willed some money to my daughter (he's still alive though lol!) He offered to send it over here so that we could put it toward a house on the understanding that the money belongs to my daughter and not to me and my husband. No problem so far... my question is about tax. I believe in England if an estate is below £312,000 then no Inheritance Tax is payable, but the Gift Tax requirements here are a little confusing! I don't really want him to send it over if a big % of it will go in taxes - he worked hard for that money!

We're going to talk to H and R Block next week but I thought if anyone here knew anything about it I could get it straight in my head lol!

I am not a tax professional, and you should definitely seek advice from one about this (call a CPA). My memory is telling me the gift limit from an individual is either 12 or 20,000 per tax year. Beyond that, it has to be claimed on your taxes and will be taxed. Don't try to cheat by putting it in your daughter's name and then spending it yourself. I'm pretty sure that's thoroughly illegal.

[tallcoolone 102]

Don't go to H R Block, that is foolish.

Consult a CPA with Tax Attorney on staff or better yet a CPA / Tax Attorney and discuss this with them

[wellywench 0]

Evening all!

My father in the UK has willed some money to my daughter (he's still alive though lol!) He offered to send it over here so that we could put it toward a house on the understanding that the money belongs to my daughter and not to me and my husband. No problem so far... my question is about tax. I believe in England if an estate is below £312,000 then no Inheritance Tax is payable, but the Gift Tax requirements here are a little confusing! I don't really want him to send it over if a big % of it will go in taxes - he worked hard for that money!

We're going to talk to H and R Block next week but I thought if anyone here knew anything about it I could get it straight in my head lol!

I am not a tax professional, and you should definitely seek advice from one about this (call a CPA). My memory is telling me the gift limit from an individual is either 12 or 20,000 per tax year. Beyond that, it has to be claimed on your taxes and will be taxed. Don't try to cheat by putting it in your daughter's name and then spending it yourself. I'm pretty sure that's thoroughly illegal.

Thank you for the advice about the CPA - I'll look for one today. BTW I'm wouldn't try to cheat! The house will legally be in my daughter's name.

Don't go to H R Block, that is foolish.

Consult a CPA with Tax Attorney on staff or better yet a CPA / Tax Attorney and discuss this with them

Will do thanks.

[kaffy 2]

Please come back and update what you find out.. I am curious to know the answer of this

[I AM NOT THAT GUY 5,715]

This might help:

http://www.bankrate.com/brm/itax/tax_advis...gift-tax-a1.asp

[britbird 4]

Yup, you need a tax attorney/specialist.

If money is an issue you might try contacting a local law school, sometimes they have free tax clinics.

[rheanick 42]

Evening all!

My father in the UK has willed some money to my daughter (he's still alive though lol!) He offered to send it over here so that we could put it toward a house on the understanding that the money belongs to my daughter and not to me and my husband. No problem so far... my question is about tax. I believe in England if an estate is below £312,000 then no Inheritance Tax is payable, but the Gift Tax requirements here are a little confusing! I don't really want him to send it over if a big % of it will go in taxes - he worked hard for that money!

We're going to talk to H and R Block next week but I thought if anyone here knew anything about it I could get it straight in my head lol!

I'm wondering if you plan to wire transfer money here in the US. I know that wire transfer of more than 10K will not be taxed. The tax would only be on the interest of your money if you keep it in a bank.

Edited March 20, 2009 by rheanick