On today’s show we discuss what happens when a parent gives everything to one child and that child feels obligated to give to their siblings…
I had an interesting conversation the other day with a client. She had been given everything from her mother, effectively cutting out her other siblings. She felt obligated to give them some of the assets but was hesitant because she thought they would be wasted.
She wanted to know what she had to do, what she could do, and if there were any repercussions to taking one course of action over the other.
I told her, first things first, that she had no obligation to give her siblings anything. Not one single dime. Her mother had given her the assets outright and they were hers to do with as she pleased.
In fact, I went on, if you are going to give anything to your siblings you need to be careful how you do it. If you give away too much at once, it can have negative estate tax implications for you and your spouse.
For example, if she gave away more than $14,000 away in any year to anyone she would have to file a tax form for that and it would be taken out of her lifetime exemption.
Furthermore, if she held on to an asset for a while and then gave it to a family member that family member could face additional capital gains tax on the property!
The bottom line is, think before you act, learn all the angles, and then go for it!
Christopher Small is a Seattle probate attorney who helps people get rich and live forever. He is also the owner of CMS Law Firm LLC.
P.S. Don’t forget to check out my free ebook: “7 Estate Planning Mistakes Every Family Needs to Avoid.” It’s packed full of helpful information to help you get everything you want out of life (and after life).