Bob and Paige Are Married and Live in a Common

question 142

Essay

Bob and Paige are married and live in a common law state. Bob owns some real estate (fair market value of $560,000) which they would like to give to their five adult married children. The spouses of their children (e.g., son-in-law, daughter-in-law) are to be included in the gifts. Bob and Paige do not want to use any of their unified transfer tax credit. Assuming an annual exclusion in the amount of $14,000, suggest a viable way to structure the transfer.

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Definitions:

Evaluation

The systematic process of determining the merit, value, and significance of something, typically for the purposes of decision-making or understanding.

Perspective Taking

The cognitive capacity to consider a situation from the point of view of another person, improving empathetic understanding.

Peer Group Status

The position or rank an individual holds within a peer group, affecting their social interactions and sense of inclusion.

Self-Understanding

A child’s cognitive representation of the self—the substance and content of a child’s self-conceptions.