ILs giving us money

[Anonymous]

It is a total of $15,000 you can gift to an individual in 2019
tax free to the recipient.

[Anonymous]

Anonymous wrote:It is a total of $15,000 you can gift to an individual in 2019
tax free to the recipient.

Per person, ie mil and fil can get ds and Sil up to 60k per year I believe.

[Anonymous]

Anonymous wrote:

Anonymous wrote:the first about $12,000,000 passes without tax consequences. In laws must be loaded; in any event, they're poorly advised.

They’re not avoiding taxes by giving you the money. But according to IRS, the gift needs to be reported and counts against the estate’s $12M exclusion.

Tax free up to $11.4M

[Anonymous]

Anonymous wrote:Put it in your kids 529 accounts, or set it aside in a seperate account for them. If they’re education is already covered, you could give it to them as a down payment for a house some day.

Do they give money with emotional strings, or are they really just divesting as part of their estate plan? If it’s just their estate planning, put it in a seperate account and save it for your children.

Are there strings attached? Can you move it all into the kids’ college funds?

[Anonymous]

Yes

[Anonymous]

Anonymous wrote:

Anonymous wrote:the first about $12,000,000 passes without tax consequences. In laws must be loaded; in any event, they're poorly advised.

They’re not avoiding taxes by giving you the money. But according to IRS, the gift needs to be reported and counts against the estate’s $12M exclusion.

Nope. You can give the annual amount each year to each person. That does not need to be reported. Honestly, what they are doing is the most basic of estate planning.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:the first about $12,000,000 passes without tax consequences. In laws must be loaded; in any event, they're poorly advised.

They’re not avoiding taxes by giving you the money. But according to IRS, the gift needs to be reported and counts against the estate’s $12M exclusion.

Tax free up to $11.4M

Plus the annual amounts. That is the whole point of what they are doing.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:the first about $12,000,000 passes without tax consequences. In laws must be loaded; in any event, they're poorly advised.

They’re not avoiding taxes by giving you the money. But according to IRS, the gift needs to be reported and counts against the estate’s $12M exclusion.

Nope. You can give the annual amount each year to each person. That does not need to be reported. Honestly, what they are doing is the most basic of estate planning.

Amounts over the annual exclusion need to be reported and count against the $11.4M.

[Anonymous]

Anonymous wrote:the first about $12,000,000 passes without tax consequences. In laws must be loaded; in any event, they're poorly advised.

Maybe they're worth more than $24 million?

Maybe they (rightfully so) are concerned that the existing exemption amount expires and must be extended and they anticipate that if the D's control Congress that the estate tax situation will tighten up? It's actually not a bad idea to go ahead and lock in the tax-free transfer now. In the past, amounts transferred under the gift tax exemption were grandfathered even when the estate exemption was subsequently lowered. Also, even Biden is running on eliminating the stepped-up basis for inherited assets, so the benefits of holding on to property until death may go away, as well. Sounds like OP's parents are hedging their bets.

[Anonymous]

Our inlaws Do this too. They can't take it with them and don't like spend on themselves. I say thank you. Use it for my children like getting a nanny instead of daycare and fund their 529s. I'd rather they used the funds to do something nice for themselves or hire some help. So if need be we hire them help (to rake leaves, do gutters etc etc).

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:the first about $12,000,000 passes without tax consequences. In laws must be loaded; in any event, they're poorly advised.

They’re not avoiding taxes by giving you the money. But according to IRS, the gift needs to be reported and counts against the estate’s $12M exclusion.

Tax free up to $11.4M

Nope. It doesn't count against the $11.4 million if it is under the reportable gift tax amount per year. It only counts against the lifetime exemption amount if it is over the yearly gift limit and is reported as such.

Also, as others have pointed out, the limits apply per person, and the lifetime exemption amount is portable between couples. So it is $11.4 million x four.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:the first about $12,000,000 passes without tax consequences. In laws must be loaded; in any event, they're poorly advised.

They’re not avoiding taxes by giving you the money. But according to IRS, the gift needs to be reported and counts against the estate’s $12M exclusion.

Tax free up to $11.4M

Nope. It doesn't count against the $11.4 million if it is under the reportable gift tax amount per year. It only counts against the lifetime exemption amount if it is over the yearly gift limit and is reported as such.

Also, as others have pointed out, the limits apply per person, and the lifetime exemption amount is portable between couples. So it is $11.4 million x four.

I followed you until the x4. Who are the four?

[Anonymous]

Anonymous wrote:I feel like an anonymous forum is the place to vent about this or be put in my place. Each year, sometimes multiple times a year, my ILs give us a substantial chunk of change - in the tens of thousands -- as their way to avoid a higher tax burden (keep in mind they purport to be serious Dems) calling it a "gift" or "donation" to us. They don't ask, just transfer the money. As someone who always worked really hard to become a financial stable person, I get annoyed by this (and don't feel like it's "my" money). Is that stupid of me to complain about free money?

Frankly, you should at least appreciate the fact that they are able to do this, from a practical and emotional standpoint. My beloved grandfather was a religious investor in stable stocks/companies. He and my grandmother lived through the Great Depression and every purchase was maximized for value. He taught me how to evaluate a stock and encouraged investment even if it was $5 and increased over time. His/my grandmother's wealth increased exponentially in the late '90's and the relatively low estate tax cap at that time worried him. But despite endless conversations with his family and his lawyers about what could be done to mitigate the estate tax he simply couldn't make the decision because the amount of money they were looking at was inconceivable to them and he was cautious.

He and my beloved grandmother (his wife of over 65 years) died within 6 weeks of each other. Fully 50% of their estate - which totaled less than $2 million went to the US Government.

If you simply can't stand receiving this money and don't need it, start a foundation or something. I get where you are coming from, but just cut it out.

[Anonymous]

Anonymous wrote:I feel like an anonymous forum is the place to vent about this or be put in my place. Each year, sometimes multiple times a year, my ILs give us a substantial chunk of change - in the tens of thousands -- as their way to avoid a higher tax burden (keep in mind they purport to be serious Dems) calling it a "gift" or "donation" to us. They don't ask, just transfer the money. As someone who always worked really hard to become a financial stable person, I get annoyed by this (and don't feel like it's "my" money). Is that stupid of me to complain about free money?

Stop bragging. If you don't want the money then you do not keep their gift or give yo a charity in their name. The fact that you keep it belies your outrage!

[Anonymous]

Anonymous wrote:Our inlaws Do this too. They can't take it with them and don't like spend on themselves. I say thank you. Use it for my children like getting a nanny instead of daycare and fund their 529s. I'd rather they used the funds to do something nice for themselves or hire some help. So if need be we hire them help (to rake leaves, do gutters etc etc).

You do not have to accept, do you? The fact that you accept, with alacrity I bet, indicates your hypocrisy.