can i gift my inherited savings ee bond to child and use the proceeds for her college tax free?
599144
I don't think inherited bonds qualify. According to the form 8815 instructions, \n\n"To qualify for the exclusion, the bonds must be series EE or I U.S. savings bonds issued after 1989 in your name, or, if you are married, they may be issued in your name and your spouse’s name. Also, you must have been age 24 or older before the bonds were issued. A bond bought by a parent and issued in the name of his or her child under age 24 does not qualify for the exclusion by the parent or child."\n\nFrom this, I would think that the bonds don't qualify since they were not issued in your name.
912146
Buy the house and put it in both of your names at the time of purchase.  At some point quit claim your name from the title and she owns the entire house.  No reportable tax events have occurred. \nThe gift tax issue has nothing to do with the home gift idea. However the limits are $12,000 and both a husband and wife may give that amount, meaning $24,000.  If you exceed that amount you, the giver must report it, not the receiver to whom it is tax free regardless of the amount.  After you die the amounts you have given away will have an impact on your estate taxes, which at the moment do not effect anyone with less than $2 million in assets.
1027829
A EE savings bond is an investment issued by the US Federal Govt. It is issued at a 50% discount to face value. What this means is that if you buy a $100 EE bond you will pay exactly $50. On the day that you purchase that bond it will have a fixed rate of interest. (You can ask the person who you buy it from what the rate is on that day.) There should never be any commission or fee to make this purchase so the 50% discount rule should be in effect for every purchase. To see when your bond will double,(reach face value), you will use the rule of 72. Divide 72 by whatever the interest rate is that you will receive. The result is the number of years it will take for your bond to reach face value. Ex. If the rate for a bond is 6% you would take \n72 / 6 = 12. It would take 12 years for your bond to reach face value (double). The bond will continue to accrue interest at the same rate for up to 30 years. After 30 years it will no longer accrue interest. The interest that you receive when you cash in a savings bond is taxable at the federal level but not the state. In  some cases if you use the savings bonds for higher education of a child it becomes tax free at the federal level as well. That's about all I know about EE bonds. You might also check into II bonds. They are inflation adjusted bonds that the government issues. The rates fluctuate with inflation. Because of this slightly higher risk, II bonds have a bit more growth potential. Good luck
1025105
A CRT is a complex vehicle that can be very valuable when used in the right circumstances.  It can't be used as an active trade or business (selling property continuously may be considered a business. The annual payout is calculated based on the fair market value of the assets and the specified rate in the trust document, this is prorated for any mid year contributions.  The CRT would pay to you for life an depending on ages and payouts rates to your kids for a term of years or for their lives.  At the end of the trust term the assets would transfer to charity, this could be a Family Foundation but the initial tax deduction may be reduced to the reminder interest of the basis depending on the assets contributed.  The amount of money family members could take as a salary would depend on the value of the foundation and how much work was being done on behalf of the foundation.  The CRT is tax exempt but distributions are taxed on a worst in first out philosophy.  The most important thing to avoid that could undo tax benefits in a given year is a CRT can't have any debt financed income.
220860
For sure, if you don't have enough money to pay the bills and you're going into debt, you might be putting too much money in your 401(k).  Likewise, if you're not saving enough for your children's education, you might want to limit your contributions and consider an Education IRA or a 529 plan, if you haven't already.\n\nThe only other situation that I can think of that might (and I emphasize might) warrant reducing your 401(k) contribution is looking at the inheritance tax situation of your future heirs.  If the estate is large enough, they will not only have to pay inheritance taxes on the estate, but also income tax on the 401(k) (at least that's how it was few years ago; I doubt the law has changed).  If the only liquid investment in the estate is the 401(k), the heirs might not have enough to pay all the taxes, forcing the sale of real estate, which neither you nor your heirs might want.  If this is your case, I'd recommend contacting a tax specialist.
268587
I bonds are a better choice because they are adjusted twice per year for inflation. In the simplest terms, the interest rate will be much better that the EE bonds. The EE bond now are at a fixed rate which means that the life of the bond will be at whatever rate in which you brought it. It wasn't like that in the past for EE bond. That change was recently made. I bonds can be redeemed in 5 years without forfeiting any of the interest. If you redeem sooner, you will loose three months worth of interest. With both bond, you are only taxed on the federal level, not state. You can also be tax exempt for both bond if you use them for qualified educational expenses. \n\nTreasury Direct is an excellent website for learning about and purchasing these bonds.
633015
First, be aware the tha IRS might not accept that the stock was really a gift if you have an employment relationship with the donor's family.\n\nAssuming that they treat the original transaction as a gift, you inherit the donor's basis. If you sell 25% of the stock now for $9,500, you would have a capital gain of $3,000 ($9,500 - 25% of $26,000). This would be a long-term gain eligible for a reduced tax rate (5% or 15%). The tax you would owe would depend on the complete details of your tax situation.\nThe amount you are receiving is not a dividend and in most circumstances there would be no reporting requirement imposed on your employer.
273217
Most definitely.  And you don't need a trust as one of the other responders stated.  Borrowing the money is usually the biggest challenge, but I would imagine you've got that covered.\n\nAnd to be a little more specific from the previous answers, the IRS holds a withholding tax when you sell to make sure your capital gains taxes get paid without your skipping out.  \n\n\nGood luck!
928842
Let her know that you will not get the money until you turn age 35. It will give you more time to learn how to judge the intentions of this one and others. Do not broadcast you inheritance to any more people!
855191
IRA's are only for wage earners, so unless your children have jobs, you can't open one.\n\nWhat you can do is open a broker account (Charles Schwab, Scott and Co., Merrill Lynch, and the like)for each child - Uniform Gift to Minors Account - and invest in high yield money market funds paying close to 8% versus CD's which pay 3-4%. You can make such contributions on a regular basis, or as circumstances permit. There is no set amount or timetable. \n\nThe earned dividends are not taxable to them until it amounts to $600 per year (check with the broker, I'm not sure of the amount.)\nAt age 18, the account belongs to the children and should be converted to their names.
197445
you sound like a candidate for treasurydirect.com .. Ibonds in a custodial account for the kids. make regular contributions to it.\n\nyou can also look at savingforcollege.com , although I am not a big fan of 529 plans, it may make sense for you.
739696
If they are U.S. Savings bonds, you can cash them in at your bank.  As far as the name, it depends on how far off your name they are.  If your name is Thomas and she used Tommy, it's no big deal.  Just show your driver's license.  If your name is Robert and your grandmother put Bobo, you may have a problem.\n\nJust remember that at this point they are only worth 1/2 face value.
303192
It can be done.  You should consult an advisor with experience in trust planning.  I would recommend a trusts and estates lawyer.  The major question you will want to answer is whether you want to give the money to the school and let them manage it, or whether you want to retain management over the funds yourselves.  In either case, there must be no possibility that anyone but a charitable, educational, etc. recipient will ever get any money from the fund.  It's probably easier to qualify if you turn over management of the fund to the school, but you should be able to accomplish it either way.
1144644
Yes, but it must be filed and it's a one time thing. You can only do this one time, any other gift will be taxed. You will also have to provide a "gift letter".
773934
i very much doubt that as a private exchange this will be allowed under any circumstances.........basically its ok for them to leave a family in an over crowded situation BUT for them to actually allow you because it is what you want is not the same [well WE know it is but you get my drift].................and you can sign or offer to sign ANYTHING the thing is once she turns 12 then a whole new set of laws and rules are broken so its just not going to happen.\n\nAs some one that has been there done that [council wise] is there an open property list that has all the available swaps including the private ones...............see you can have a private exchange so long ans no one has rent arrears but again this has to be approved by the council.\n\nGood luck with your search.
227173
It would be wiser to divide the gift in smaller amounts and give them to several members of your family and then they can give the money to you and you don't have to pay any taxes. Or you can divide the gift among several years.\n\nThere is a limit to the amount of gifts you can get tax free each year. Find that number.\n\nI am also a friend of yours and I can also give you a gift each year. If you know what I mean.\n\nFor an amount as small as yours you problably can do it with just 3 relatives or friends.
125910
As long as the amount is below $11,000 you can write it off as a Gift.  View the link that I have provided to the IRS.  \n\nIf you don't like this answer and no one gives an answer you are happy with, call 1-800-tax-1040 to talk to them at the IRS directly. They are usually very friendly, and the hold time is not to long.