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  • Adam Bartsch

Avoiding Problems With Advancements

What could be simpler than making a gift to one of your children on the condition that the amount be deducted from their inheritance? If only it were so simple.

Problems can arise in several areas. For instance, suppose Dad made a gift to Abigail of the lake cottage valued at $125,000, purchased a vehicle for Ben valued at $25,000, and made a gift of $20,000 cash to Chuck. Five years later Dad dies. In the interim, the lake cottage unexpectedly jumped in value to $250,000 while the vehicle decreased in value to $10,000. When determining how the gifts should be applied against each child’s share of Dad’s remaining estate, is the lake cottage valued at $125,000 or $250,000? What about the vehicle, which decreased in value? Should five years of interest be added to Chuck’s cash gift?

To read more, click the PDF below...

2018 - 05, Advancements
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