In this episode of Tax Boss, we discuss gift tax and how to help your clients make friends by giving their wealth away.
1:17 Gift reporting and gift tax rules; when drafting a will to leave everything to one person with instructions to divide it further
2:30 The burden of gift reporting requirements
3:10 Gifts in excess of $15,000 in any calendar year need to reported to the IRS (married couples may gift up to $30,000 in a calendar year between the two of them)
4:20 Gifts and lifetime exclusion
4:39 Back to burdening one individual with reporting, and why her ‘actual’ gift would be less than what counts toward her lifetime exemption amount
6:10 Explaining why a Personal Representative solution is much better
6:42 What if your friend doesn’t gift out your estate the way you plan? What if she is in the middle of a divorce? Or is being sued?
7:17 Marilyn Monroe’s estate planning fail – why a woman she never met inherited everything
8:17 Leaving assets to one person in the hope they’ll gift to another person is a very, very bad idea