AboutAnthony S. Park Expertise New York wills, probate, and estate planning.
"Wills" includes advice and preparation of the following documents: wills, powers of attorney, living wills, healthcare proxies, burial instructions, and other supporting documents.
"Probate" includes the following Surrogate's Court proceedings: probate, intestate administration, small estate administration, and most other proceedings.
"Estate Planning" includes planning for the following areas: asset protection, estate tax, income tax, charitable giving, and other wealth planning issues.
Experience Experience: Anthony Park is an attorney with an active Wills, Probate, and Estate Planning practice located in midtown Manhattan.
Expert: Anthony S. Park Date: 3/25/2008 Subject: life insurance inheritance
Question My mother passed away and left me and my two sisters as beneficiary of one of her life insurance policies. We will each receive about 33,333. We intend to give the money to my father because he needs it, but I don't know the best way to do that without knowing what kind of federal or state tax implications there might be. Can I accept the lump sum payment and just sign the check over to him? I thought of not claiming the money at all, but he was not the co-beneficiary and there was no estate set up either.
Answer Marilyn, under federal law, you may gift $12,000 per year to someone (your state's gift tax law may differ). One solution is for you to give your father $12,000 now, $12,000 on January 1, 2009, and the balance on January 1, 2010. There are many other possible solutions out there, you should speak with an accountant or estate planning attorney in your state for more detailed suggestions.
