I am specifically interested in US laws and state laws in Georgia.
It used to be possible for an aged parent to “sell” land to their children for what was refered to on the legal paperwork as “$1 and other considerations.” I know this to be fact because that is how my father gave me some of his land to use as collateral for a bank loan to start my first business.
Now we face a situation where another family member probably doesn’t have much time left, and he wants to get his land into the hands of his children without those children having to pay inheritance tax. A family friend mentioned hearing that the law had changed now and that land transfered to a relative within some period prior to a person’s death might still be subject to inheritance tax.
Anybody got the Dope on this? My searches yield nada.
I’m not looking to do anything illegal, I just want the info so we’ll know what to expect as there is already so much emotional turmoil involved in this situation.
You need to talk to a lawyer licensed in your jurisdiction. Legal advice on a message board is worth less than what you pay for it.
IANAL, and know very little about estate law, but in bankruptcy there is such a thing as a fraudulent transfer. Assets are sold for less than they’re worth to protect them from the bankruptcy. Whether something similar applies to avoiding estate taxes is a question for your lawyer.
At the Federal level there’s a unified estate and gift tax. With minor exceptions, if you’re going to be liable for estate taxes, you don’t avoid them with a transaction like this, which will be viewed as a gift, if not tax fraud.
As Otto says, see a lawyer licensed in the state in question, which apparently is Georgia (would be if both uncle and land are both there.) People who try to save $500 or $1000 in legal fees with poorly-thought out estate planning alternatives often end up paying far more later, especially if the estate is of a size where estate tax is an issue.
IAAL, but not your lawyer. This is general information and not reliable legal advice. See a lawyer licensed in your state for that.