QUESTION
A friend wishes two gift money to two friends. How should such a matter be written as a document? What are the steps?
Asked on Dec 11th, 2012 on Estate Planning - Maryland
More details to this question:
A friend was injured by a Dr. her lawyer has won her case. She would like to split it with two good friends. She hasn't received the money yet. In the meantime she wishes to write it up as a doc. How does one go about doing this?
11 ANSWERS
Appellate Attorney serving Grosse Pointe Farms, MI
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Musilli Brennan Associates, PLLC
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Your friend should engage in attorney then discuss whether or not a gift tax return will be required. As for the gifting of the money itself, all she has to do is place it didn't work out, wait until the settlement or judgment check clears, and then write a check to those people she wishes to give the money to.
Answered on Dec 14th, 2012 at 3:26 AM
Shadi Ala'i AlaiShaffer
She needs to hire an attorney to guide her in how to properly and legally do this and you want to consider and gift or tax issues that will come up with this situation. Either her injury attorney could possibly assist or she should hire a trust attorney that will set up a trust for her to protect the settlement money and assist her with gifting this money to her friends.
Answered on Dec 14th, 2012 at 2:26 AM
Probate Attorney serving St. Louis, MO
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Edward L. Armstrong, P.C.
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She really needs to retain counsel for this.
Answered on Dec 14th, 2012 at 12:32 AM
Business Planning Attorney serving Livonia, MI
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Frederick & Frederick Attorneys at Law
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Normally, one does not do this. If the lady in question is concerned that she will pass away before receiving the settlement, then she can leave a Will or at least a letter that could be considered a Will or codicil. Otherwise, she would simply write a check, once she has received the settlement.
Answered on Dec 14th, 2012 at 12:08 AM
Taxation Law Attorney serving Glendale, CA
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Irsfeld, Irsfeld & Younger LLP
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If she want to give money to someone, why doesn't she merely write a check.
Answered on Dec 13th, 2012 at 9:20 PM
Trusts Attorney serving Sacramento, CA
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Law Office of Victor Waid
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The injured friend should seek a referral to an estate planning lawyer from the attorney who represented her in the injury suit. Besides the award may have some conditions attached re payout, which is all the more reason to seek out an estate planning lawyer referral from the personal injury attorney.
Answered on Dec 12th, 2012 at 4:34 PM
Probate Attorney serving Newport, OR
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Minor, Bandonis & Haggerty P.C.
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Such gifts should be carefully considered, both from the standpoint of the donor (will she have ongoing medical expenses. Is she retaining enough of the settlement to cover such expenses. Will there be taxes on the settlement (complex question, to be answered by a competent tax accountant, not by the folks in the lunch room).
Answered on Dec 12th, 2012 at 4:34 PM
Gary R. Pearson
have her lawyer who handled her case do it.
Answered on Dec 12th, 2012 at 4:34 PM
3 Awards
There may be tax consequences. She should consult her CPA and attorney.
Answered on Dec 12th, 2012 at 2:41 PM
Thomas Edward Gates
The person is permitted to gift $13,000 per year to another party. If the amount is more, it is not a gift and taxes would be owed for the amount that exceeds $13,000.
Answered on Dec 12th, 2012 at 2:29 PM
Alternative Dispute Resolution Attorney serving Baltimore, MD
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Whiteford, Taylor & Preston L.L.P.
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No document is necessary. Your friend simply could give cash or checks to her friends. Depending upon the amount, she might have to file a federal gift tax return, but she is unlikely to have to pay any gift tax.
Answered on Dec 12th, 2012 at 2:17 PM