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I have a situation where a couple will be getting divorced around Dec 31. The husband wants to use some of the spouse's lifetime exemption and do a split gift. They haven't been married long enough to have community property so the Husband would be gifting some of his property and have the wife elect to split the gift. She seems to be willing to do this if she gets what she wants in the divorce settlement.
I am concerned that the wife may agree to the plan in December, but possibly refuse to sign the 709 come April or October depending on the filing date. I havent seen any research that would indicate a marital agreement could be construed as an election to split gifts on a return.
Anyone ever have a similar experience?
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Member
 
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i think that your client has a real problem- my recollection is that you can not contract to make a gift. maybe they could use an "escrow person" to make sure that the gift is made and the wife gives what she agrees to give?? a condition might be the signing of the gift tax returns.
you definitely need legal advice on this...
Anonymous (12/3/2007)
I have a situation where a couple will be getting divorced around Dec 31. The husband wants to use some of the spouse's lifetime exemption and do a split gift. They haven't been married long enough to have community property so the Husband would be gifting some of his property and have the wife elect to split the gift. She seems to be willing to do this if she gets what she wants in the divorce settlement.
I am concerned that the wife may agree to the plan in December, but possibly refuse to sign the 709 come April or October depending on the filing date. I havent seen any research that would indicate a marital agreement could be construed as an election to split gifts on a return.
Anyone ever have a similar experience?
IRS Circular 230 Disclosure: To ensure compliance with requirements imposed by the IRS, we inform you that any U.S. tax advice contained in this communication (including any attachments) is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code, or (ii) promoting, marketing or recommending to another party any matters addressed herein. |
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| I guess we should try to have the return prepared before year end if possible.
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| What did you decide to do? I have a similar situation and want to make sure the non-donor spouse consents to split gifts made during marriage in the event the couple divorces during the TY. Would the promise be enforceable if the donor spouse gives consideration to the non-donor spouse for the latter's promise to give consent? Thanks.
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This forum is closed and we are no longer accepting new posts. If you are interested in starting a discussion with California CPAs, please visit out forum at: http://calcpaestateplanning.ning.com/
Thank you,
CalCPA
http://www.calcpa.org
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I have gone through
http://calcpaestateplanning.ning.com/
but I couldn't find any forum there so can you tell me where should I go???
coaching accreditation
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Add the word forum to the link you tried.
http://calcpaestateplanning.ning.com/forum
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Yep! Thanks it works, after adding the word forum to the end of the link, i got connected to the forums.
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Anonymous (12/3/2007)
I have a situation where a couple will be getting divorced around Dec 31. The husband wants to use some of the spouse's lifetime exemption and do a split gift. They haven't been married long enough to have community property so the Husband would be gifting some of his property and have the wife elect to split the gift. She seems to be willing to do this if she gets what she wants in the divorce settlement.
I am concerned that the wife may agree to the plan in December, but possibly refuse to sign the 709 come April or October depending on the filing date. I havent seen any research that would indicate a marital agreement could be construed as an election to split gifts on a return.
Anyone ever have a similar experience?
If one party paid for the wedding, that is seen as a voluntary act, pre marital. If, by agreement, the parties can split the costs, the marital settlement agreement should indicate that.
Kitchen cabinets
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