If I as a US resident/citizen/retired taxpayer make a "gift" of my interest in a "inherited" piece of real estate in the UK, to my son, a US citizen who is currently living and working in the UK, would it be considered a "gift" subject to the US IRS's annual gift limits of $14,000 ??
Some details: The property in the UK is a vacation cottage and was owned by my father & step-mother. Step-mother died in 2008. Father died in 2012. In 2007 they had "sold" the cottage to my half-sister and half-brother. It is currently titled to the 2 of them. I am told that at the time a "letter of understanding" was done to show that I did have a 1/3 interest in the property. My half-sister is executor, and has been working on clearing up all the issues of the our father's estate.
She would like to have the deed re-done to show me as also on the title. What I would rather do, if possible, is "transfer" my "interest" to my son, now, rather than have it be part of my eventual estate.
Currently, 1/3 of the cottage value would be approx US$ 57,500. (Full GBP 111,000)
Would the US gift tax rules apply to this transfer ??