Gift of $4,000,000
I was given a gift (real estate) from my grandmother of over $4m about 7 years ago. My Grandmother died 3 years after the gift but never filed a gift tax return. I Need some advice as to how to protect this gift, and wisely use it for the future. I was told that gift tax with penalties and interest could eat up about half of the gift. Grandpa is still alive and also signed the gift deeds. I am land rich and cash poor………. Help please.
Permalink Submitted by Al Fry on Sun, 2009-06-07 02:52
Probably best handled my our friend, Bruce.
Permalink Submitted by Alan Spross on Tue, 2009-06-09 23:17
My impression here is that the value of the gift will be included in her gross estate, and perhaps that is how someone came up with a dollar amount. They probably added the gift to the value of her other assets at death and applied the unified credit for her year of death. If the other assets in her estate are insufficient to cover the estate taxes due, the IRS could come after your real estate for the remaining balance. I don’t know how you would prevent that from happening with any pre-emptive action, but once you hear from the IRS or her estate attorney on this, better get professional tax counsel.