[fintstone]

Originally Posted by rattlsnak

So as long as he fills out that form and it doesn’t exceed the lifetime amount, it’s still considered a gift and no taxes apply?



We have an estate attorney for the trust, but early withdrawal is out of his wheelhouse.

According to the IRS, yes (if it is cash)...but you did not indicate it was an "early withdrawal." Is that a mistaken term and you just mean an early distribution of his estate? What has/is an "early withdrawal for a 90-year-old?

If it is a non-cash asset (like real estate) that is given as a gift, there would likely be capital gains. Those are typically best to transfer as part of the estate as they generally are inherited at current value (no capital gains unless the value increases after the inheritance).

Depending on the size of one's holdings, it is a good idea to transfer wealth now. The current $13.61 million lifetime exemption increased as part of the temporary Trump tax cuts. It goes back to a $6.8 million lifetime exemption in 2026 when income taxes go back up unless it is renewed. That depends on election outcome in Nov). One candidate says he will extend it, the other says he will not.

There is an accountant that posts here that does taxes. Hopefully he will weigh in.