Gifting Assets Before Death
There may be certain reasons that persons opt to gift their property and assets while they are still alive as opposed to waiting until death. Minimizing tax liability may be a consideration in gifting property before death, but pre-death transfers open up the door to the same types of disputes as transfers made at the time of death. In addition to challenging transfers that occur at death, it is also possible to set aside improper transfers made during life, or by beneficiary designation.
Gifts Before Death Rules in Florida
Similar to gifting assets before death, transfers made during life may be voidable on the grounds of undue influence, lack of testamentary capacity, fraud, or duress. Our Vero Beach and Treasure Coast attorneys work with clients by reviewing the gifts before death rules and determining the efficacy of such pre-death transfers; and should there be some question as to the validity of the transfer, they will work hard to protect the client’s interests in the outcome.
Often times, these types of undue influence or duress situations arise when individuals are of older age and their judgment is hindered due to medical conditions or they are unduly pressured into signing over assets or transfer of property before death.
Working with an attorney can help build the case you need to prove that the family member or individual presenting the pre-death transfer was not in the right state of mind at the time of the transfer.
Transfer of Property Before Death – Intent and Validity
In cases such as above, our attorneys will work with you to identify the true intent of the transfer of property before death, if any, and then seek to perform discovery around the circumstances that led to the alleged improper transfer. In looking at the totality of the circumstances, we can unearth the truth behind such pre-death transfers to clarify the validity of the transfer.
Tax Implications of Giving an Early Inheritance
If you’re contemplating giving an inheritance before death in Florida, then you will want to understand some basic gifts before death rules to know your potential tax liability. Per the IRS, you are allowed to gift up to $13,000 per person and avoid a gift tax. Certain items, such as medical expenses and college tuition, are not taxed under the gift tax.
If you gift more than $13,000 worth of assets before death, your gift will be taxed.
Avoid Will & Trust Disputes with Proper Planning
Proper will and trust planning can prevent most, if not all, will and trust disputes. If you’re concerned about improperly gifting assets before death, we’re here to help.
Our seasoned attorneys will work hard to ensure a deceptive or illegal transfer is rendered invalid, or if you are the beneficiary of a transfer that is being challenged, we will work with you to build your case.
Want to learn more? Contact us today for a private consultation.