Lottery win question

Reply #15

Clubpulse1 — Sat, 06 Jul 2013 19:07:37 GMT

Short sweet: If I won the Mega Millions or Powerball Jackpot, I would do the following.

1. Run my credit report and pay off any outstanding debts within the last two years only.

2. Pay off my house and current existing debt such as student loans.

3. Depending on how much I won, I would pull out @ least $4 million in cash to put in a secured bank safety deposit box. Explanation: Stock market crash, banking system fails, you'll be able start over comfortable even if your money has to be c... [ More ]

Reply #14

helpmewin — Wed, 03 Jul 2013 00:11:18 GMT

maybe you should just give them the money and they can buy the house they want

Reply #13

joshuacloak — Tue, 02 Jul 2013 22:12:20 GMT

trust is always correct path

and must simple, can write it however u like really

just find a trust lawyer, tell him what u want to give,and let him claim ticket for trust/handle ever thing

if u want to help family that is................

if u have kids or other family u want 2 give big gifts 2, u want a trust,

its simple and defeats gift tax with a bitchslap

Dont ever use that 5 million ish lifetime gift tax exclusion amount for any thing, use the trust...................... [ More ]

Reply #12

Jon D — Tue, 02 Jul 2013 19:43:44 GMT

We can't buy a house for our parents, children, or siblings, but can contribute the same amount to a Political Action Committee without paying gift tax. I wonder who came up with that idea?

Yep. Super PACs are a racket. You can set up a PAC, contribute unlimited monies to it, then have your benificiary work as an employee of the PAC and get paid a fat salary from it.

Reply #11

Stack47 — Tue, 02 Jul 2013 15:40:24 GMT

What can be excluded from gifts? The general rule is that any gift is a taxable gift. However, there are many exceptions to this rule. Generally, the following gifts are not taxable gifts.

Gifts that are not more than the annual exclusion for the calendar year.

Tuition or medical expenses you pay for someone (the educational and medical exclusions).

Gifts to your spouse.

Gifts to a political organization for its use.

In addition to this, gifts to qualifying charities are

Reply #10

dallascowboyfan — Tue, 02 Jul 2013 13:23:16 GMT

Good info Teddi

Reply #9

gogidolim — Mon, 01 Jul 2013 16:09:17 GMT

I thought that you can file a multiple winner form

Reply #8

Teddi — Mon, 01 Jul 2013 12:01:15 GMT

Artemis, you are allowed to give $14,000 per year (whether in cash or real estate or anything else) to any individual person without having to worry about taxes. You also have a lifetime gift tax exclusion amount of $5.25M that you can give away to anyone that the $14K does not affect.

Let's say you bought each of those 3 family members a house valued at $1M each, for the rest of your life and even after your death, you could not give away more than $2.25M to anyone without paying the gift ta... [ More ]

Reply #7

garyo1954 — Sun, 30 Jun 2013 01:51:39 GMT

In Texas this is known as a Ladybird contract, named after First Lady, Ladybird Johnson.

She was known for giving property away and what she would do is get the loan on the property and have a contract drawn up that stipulated:

1) once all payments were made on the property it belonged to the third party (who she bought it for)

2) they were responsible for all maintenance and upkeep

3) they would pay all insurance and taxes

This contract would then be filed with the deed in the co... [ More ]

Reply #6

mikeintexas — Sun, 30 Jun 2013 01:17:36 GMT

I think that's doable, too. I once borrowed some money for a car using a CD as collateral and didn't have to pay any interest and didn't have any set monthly payments. I guess since the CD was w/ the bank was why the easy terms.

I see people in here and in other forums talking about what they'd do f/ their family and most don't realize there's a limit w/out having to pay taxes. I dunno 'bout you, but if I had won 100 million and had to pay 39.6 million in taxes, I would be loathe to pay an... [ More ]

Reply #5

billionaire2bee — Sat, 29 Jun 2013 23:56:34 GMT

That's interesting....Im wondering this....put a decent downpayment on the house you finance it thru bank credit union whatever but you put the total balance in some kind of direct payment account ( only you have access to) so that they are never late on monthly payments and it will help boost their credit rating and they can take the intrest payments off on their taxes.....is that even possible

Reply #4

mikeintexas — Sat, 29 Jun 2013 23:00:39 GMT

I've thought about this a lot and done a little research. Any outright gift is subject to the limits mentioned in the above posts. I'd consult a lawyer, but what you COULD do is buy the homes and finance them, either yourself or through the bank. I'd think there would be some tax benefits to that, plus you could charge them up to that $14 k/yr. ($28k if you're married, counting your spouse's gift) until the house was paid off.

I'm sure it's changed some now, but when I was growing up my da... [ More ]

Reply #3

Romancandle — Sat, 29 Jun 2013 22:13:44 GMT

Useful link maringoman... if I'm reading this correctly, you can give away up to 14K annually to anyone (family, friends, etc.) without paying a gift tax. If you're married its twice that (28K- you and your spouse).

I think I mixed apples and oranges with the 5.25 million lifetime cap though in reference to my first response...

So to answer Artemis's question... anything beyond 14K annually would trigger the gift tax correct? For simplicity sake... 100K house... 86K gift tax hit Y/N? And A... [ More ]

Reply #2

maringoman — Sat, 29 Jun 2013 20:40:55 GMT

http://www.irs.gov/Businesses/Small-Businesses- -Self-Employed/Frequently-Asked-Questions-on-Gift-Taxes

You would pay the taxes on any gift to anybody other than your spouse.

Reply #1

Romancandle — Sat, 29 Jun 2013 18:49:15 GMT

I've wondered about that too... if you're talking just a few million, I think the lifetime cap on gift taxes is 5.25 million, so, no they wouldn't have to pay a gift tax, but you'd need to file the transaction with uncle sam.

But I don't know jack about this sort of stuff... estate planning and taxes are complicated stuff.

I don't think you could put the property in that pereson's name, but you could transfer it to them through some sort of legal instrument after you bought it.... [ More ]

Lottery win question

Artemis — Sat, 29 Jun 2013 13:16:40 GMT

If I won a few million, and decided to buy one house for my sister, one for my father, and one for another random family member, how would that work?

Could I just put it in the persons name when buying it? Also, would they have to pay some sort of gift tax