What is the Effect of Prior Gifts on Inheritances?

Question: My widowed father recently died and his will directed that his estate should be split between my brother and me.  My brother is well off, where I have struggled financially.  To help me out over the last few years my dad gave me his car and several cash gifts.  Will those prior gifts be counted against my inheritance or will my brother and I still split the existing assets dad had at his death?

Answer: Whether those prior or “inter vivos” gifts will be counted against your inheritance depends on whether your father made a written declaration contemporaneous with the gifts that they were “advancements” against your inheritance.   If he did, or if you acknowledged in writing that they were indeed advancements to be counted against your inheritance, then the value of the car and cash at the time you received it could be used to reduce your inheritance after your father’s death.  Otherwise, these lifetime gifts are ignored and the assets remaining in your father’s estate are split equally upon his death.  To avoid confusion, it is best if your father had documented these gifts in writing.  Any lifetime gifts to an individual totaling greater than $14,000 in a calendar year should be reflected on your father’s tax returns.  The team at Bach & Jacobs assists families in administering estates after the passing of a loved one.  Contact Bach & Jacobs at (941) 906-1231 if you need assistance with probate administration.