Possible gift in future

[countrygirl2]

I'm not saying we can do this, a lot of things have to come together, but its in the back of our minds.

If we gave our son $300k to pay off his home my understanding is for example this year could gift $102,000 as its $17k for each person. I'm assuming that will go up some each year going forward. Than the balance would just go against the lifetime exemption.

There is a tax in Washington state but only over $2M and Indiana adheres to the federal of $12M+ per person married x 2.

Only way this could happen is getting good money out of property sales.

It would also not cause son to be taxed.

We also have to make sure we do it all legally as he has security clearances. Of course it could be done over 3 years also.

We are just thinking out loud of future planning.

Am I correct in what I'm reading?

[billisonboard]

I am in Washington so was curious on that piece.  Did quick research. 

Bottom line of no Washington State tax liability appears to be true.  The $2.193M exemption is an estate tax figure so wouldn't factor in at all.

[countrygirl2]

I was just wanting to make sure neither he nor we would owe any gift tax state or federal in either state.  Just seems to easy and clear cut, none of the tax laws generally are, LOL!

[Pink Cashmere]

Sept 24, 2023 13:23:47 GMT -5 countrygirl2 said:

I'm not saying we can do this, a lot of things have to come together, but its in the back of our minds.

If we gave our son $300k to pay off his home my understanding is for example this year could gift $102,000 as its $17k for each person. I'm assuming that will go up some each year going forward. Than the balance would just go against the lifetime exemption.

There is a tax in Washington state but only over $2M and Indiana adheres to the federal of $12M+ per person married x 2.

Only way this could happen is getting good money out of property sales.

It would also not cause son to be taxed.

We also have to make sure we do it all legally as he has security clearances. Of course it could be done over 3 years also.

We are just thinking out loud of future planning.

And I correct in what I'm reading?

Since it is easier for me to try to be objective about other people’s stuff than my own shit, I have questions and opinions.

IIRC, you have said that your son has his money situation under control, despite his wife wanting to spend every dime she can. You have been more than generous with helping him out, with lots of money, and it seems like he will be okay without you gifting him all that money now, to pay off his mortgage.

Meanwhile, you and your hubby are all over the place because you want to move closer to DS permanently, but buying a property in the area, that would allow your DH to keep his current lifestyle with all his stuff, is too expensive. Meanwhile, you also recently said that your DH has gotten sloppy with some of the work he likes to do, and it’s time to give all of that up IRT to maintaining rental properties. And your DH has also recently been diagnosed with cancer, and who knows how much it will ultimately cost to treat that and take care of him until he gets better. Then you have DD, who you might need help with, while you tend to DH and help him get through what he is dealing with. I am just guessing…. that any help you might need with her, won’t be free.

Should you not put your oxygen mask on first, and make sure you and DH have enough money for your own needs? Trouble is already brewing, is it not? Your son is a grown man, with his own family, and the choices he has made. He is also not a pauper, living day by day with whatever he can scrounge up to survive. 

It is just my opinion, but in my mind, the best gift you can give your son is to make sure that even if he has to one day, see about you and/or your DH, or his sister, is to at least have your own money so that he at least doesn’t have to worry about how he’s going to pay for it all. You gifting him the money to pay off his mortgage would be a big help to him, I’m sure, and I can only speak for myself, with the disclaimer that my Mom doesn’t have a pot to piss in, let alone the means to gift me hundreds of thousands of dollars… but speaking as a child, I’m okay financially. Not a star player, but I’m okay. And even with my modest means and lifestyle, if my Mom had that kind of money, I’d prefer she use it to try to make sure that if her health failed, I could tend to her and arrange for whatever she needs, without having to worry about how Imma pay for it. 

You and your DH have done an awesome job of saving for retirement. But IIRC the numbers I’ve seen somewhere around here that you all have managed to save….. please forgive me, but in my mind, it IS a lot, and more than I ever see myself having saved when I retire, but in my uneducated and YMAM reject mind, it’s not so much that you can keep giving your son hundreds of thousands of dollars. 

Again, imo, the best financial gift you can give your son at this point, is to let the money you have, make more money, or at least keep it. You have issues, your DH has a serious health issue to be dealt with, and you have a disabled daughter that needs to be seen to and taken care of if/when you can’t do it anymore yourself. I am all for you moving closer to your son and his family if you can make that happen, but I don’t think gifting him hundreds of thousands of dollars to pay off his mortgage, while it might feel good to you and him, is ultimately in his best interest, regardless of how it may or may not be taxed, and Imma be an uneducated asshole and say that I honestly don’t think you can really afford it. 

But I am a YMAM dummy and reject, so what do I really know? Nothing!

[countrygirl2]

We are all over the place, you are correct about that. Hubby and I have a big difference of opinion on handling things going forward.

But if we sell at or near the amounts we are talking about we can afford it. But that is to be seen. So we wait.