Are valuables passed down from parents to children upon the death of the parents taxable in some way?
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Are valuables passed down from parents to children upon the death of the parents taxable in some way?
My parents plan to leave me valuable antique furniture and artwork. Is there a good reason why they should gift me some of it over the next few years as opposed to leaving it to me?
Asked on November 12, 2012 under Estate Planning, California
Answers:
M.T.G., Member, New York Bar / FreeAdvice Contributing Attorney
Answered 11 years ago | Contributor
I think that it would be best for your parents to seek help from an estate planner in the area as soon as you can. The IRS requires that appraisals be submitted with the estate tax return when articles total in value over $3,000 or if a collection totals more than $10,000. The appraisal must be done by a qualified appriser and the credentials must be included. The estate pays taxes on those articles, not the beneficiary. Now, a transfer of those articles during a lifetime - gift tax - does not apply in California as there is no state gift or inheritance tax. But there could be federal gift taxes incurred. Good luck.
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