The thread started by S got me thinking.
Some family members may not be able to work and other income such as SS, savings, and pensions may not be adequate to have a reasonable lifestyle.
What makes the best way of supplementing the income of needy family members and how should that load be shared with other family members?
Direct gifts might work since there isn't any tax under $11,000(?).
How does supplying living quarters work (e.g. buying a condo)?
Any other ideas?
-- Ron
The amount is $12,000 for the year 2007. If you're married, you can give 24K. If the people you give to a married and you are single, you can give 24K (12K to each person, I'd write seperate checks). If everyone is married, then 48K. The amount may increase next year.
It's not clear to me how the IRS polices this rule. I suppose if your income (say from interest, dividends, or capital gains bought from the gift received) increases rapidly say through a 1M gift, then the IRS might have cause to look further.
No idea. I'm guessing that you can still own a house, but because you don't live in it, you can't take the mortgage interest deduction, but will still be able to take the property tax deduction.
If you do it correctly, the $11,000 limit (which is actually $12,000 this year if I remember correctly) can be worked around. It involves taking an early use of your death exemption. I qualified attorney would know all the details.
-john-
To be specific, you go to form 709 (and the instructions for the form) and use part of your unified credit. This allows one to tap part of a $1 million allowed transfer before they pass on. Yes, this year individual, no form to file gift limit is $12,000 per person combination. JOE
"Ron Peterson" wrote
Trust fund.
That might work for a rich relative to give for a poor young relative.
S was indicating that his parents would need financial help, so he can only give incrementally and he may not want to impair any support that his parents receive through governmental programs.
-- Ron
"Ron Peterson" wrote Elle
Beg pardon, but it seems to me your first post indicated yours was a general question, not one addressing specifically poster S's needs, per another thread.
I think trusts work for other situations than the one you indicate above. Between siblings, say, where one is mentally limited, and where death of the trust's creator can pass on certain limited entitlements to the mentally limited relative that will help ensure he/she has extra income for life, or similar.
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