If I leave my house and some money equaling about $500,000 to my girlfriend, what are her tax obligations?
Get Legal Help Today
Compare Quotes From Top Companies and Save
Secured with SHA-256 Encryption
If I leave my house and some money equaling about $500,000 to my girlfriend, what are her tax obligations?
Asked on August 2, 2013 under Estate Planning, California
Answers:
Nathan Wagner / Law Office of Nathan Wagner
Answered 11 years ago | Contributor
Your girlfriend may not have any tax obligations in this situation. The assets she inherits are not income for income tax purposes.
There could be estate tax, which would be paid by your estate before she receives the assets. But there is a $5,250,000 lifetime exemption for federal estate and gift tax. So, there should be no federal tax on your estate if it totals less than 5 million dollars. About a dozen states have their own estate tax, so if you live in one of those states, your estate might have to pay estate tax.
IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.