Also to note, this is why someone who say gets a $200k.gift from their parents for a down payment, the parents don't owe gift tax on it (assuming below the lifetime max exclusion). |
? |
This is NOT true. Surprisingly a lot of average middle class Americans really think they can’t give or receive more than 17k without paying a tax. Nope. All the limit is for is to prevent wealthy people from giving away all their money right before they die to avoid the estate tax. Any money given over $17k reduces the estate tax exclusion amount. |
PP obviously means to use a power of attorney while your dad is alive. The second a person dies, their power of attorney ceases to be applicable. |
This is OP. I wasn't the only beneficiary. That was someone else talking about that. My parent hasn't died yet. OP |
This is good to know! We've limited to the $17K last year and $18K this year, but it looks like we don't have to do that after all. |
Thank you. The Admin needs to pin this post. So many people get this wrong. |
My kids should. I have enough points for them to get flights to my funeral for free. |
Probate clerk is right. Most people do not do it. Get a lawyer -- never would have been questioned for not doing it. Would fill out papers correctly. |