Cross posted on the B&I board:
Mom and dad divorced after owning house for 10 years.
Dad said mom could stay in house until the youngest finished high school - another 12 years.
Dad is remarried and "does not really need the money".
4 kids range from 35 yo - 20 yo and could use the money(payoff school loans, down payment on their own home, etc) so dad has said he plans to give his 50% of the equity to kids. Guessing this will be approximately $75k. (divided by 4 is $18,750 per kid).
What is the best way to do this? Concern is dad takes money, pays appropriate taxes on it and then goes to give it to the kids and it is over the $10k a year gift limit and creates another IRS action/tax etc.
Thanks.
Mom and dad divorced after owning house for 10 years.
Dad said mom could stay in house until the youngest finished high school - another 12 years.
Dad is remarried and "does not really need the money".
4 kids range from 35 yo - 20 yo and could use the money(payoff school loans, down payment on their own home, etc) so dad has said he plans to give his 50% of the equity to kids. Guessing this will be approximately $75k. (divided by 4 is $18,750 per kid).
What is the best way to do this? Concern is dad takes money, pays appropriate taxes on it and then goes to give it to the kids and it is over the $10k a year gift limit and creates another IRS action/tax etc.
Thanks.