Quote:
Originally Posted by JollyElm
I am going round after round with health issues this past year (this isn't a pity party, so blatantly ignore that fact, please) and am trying to get my collection sorted for what the future may or may not bring. So, I have this (hopefully) straightforward question to ask:
• Am I literally allowed to 'gift' my entire collection to a loved one (or ones) here and now (in California) without the tax man swooping in? In other words, would filming myself stating that my collection is now owned by (enter name here) be enough to give them ownership if something were to happen to Mr. Elms? Would they owe taxes on this gift upon receipt? Does the 'value' amount play a role (of course it does, duh!)?
To be clear, I'm not looking for advice with regards to a will (or selling the collection, etc.), I'm only seeking an answer to the specific question(s) posed here, if anyone can help.
Thank you!
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Darren,
By the way, the short, quick answer to your direct question is - YES!
California does not have a gift tax, nor an estate tax. So only federal taxes would come into play in your case. And whomever you gift something to, or leave to them as an inheritance, will never have to be burdened with a federal gift or estate tax. If there should possibly end up being either of these federal taxes ever due, they are the responsibility and to be paid by the person giving the gift, or the estate of the person that passed away. The recipients of a gift/inheritance are not personally responsible for any federal gift or estate taxes.
But simply gifting your collection to a loved one may not be the most appropriate or advantageous thing to do for your family.