Say a parent gave one of their children a portion of the child's inheritance early - is there any tax benefit to the parent (s) (or any other benefit)for doing this? For this scenario, let's assume the child is over 18. Also, how would the child be treated tax wise?

Thanks!!

The maximum you may give a person in any given year for it to be untaxable for the receiver is $12,000. The parent cannot claim this as a deduction.

To make sure I understand correctly (in CA, btw) there's no benefit to the giver, and there's no difference and no way to earmark this money as part of an early inheitance (thought there was such a thing)as opposed to just a financial gift?

Thanks!

quote:

(in CA, btw)

I don't know how CA would deal with it for tax purposes; haven't lived there for 25 years. I was talking about the IRS.

Got ya thanks. I was just told that if the amount of money given wouldn't make a difference in their having enough money to live for the rest of their life and if their net worth (the giver) is over 2 million, it can be a benefit to the giver (maybe estate tax wise, not sure).

Thanks!