Tax saving tips for the elderly and their family

If you happen to have the following situation: 

  1. Your spouse is terminally ill. 
  2. You are in good health. 
  3. You have appreciated assets, that are your name only. 

 Husband and wives are allowed to make unlimited gifts to each other.  Prior to your spouse passing away, you should gift your appreciated assets to your spouse.

As long as their will states you are to inherit the property or you are the beneficiary on the account, at the time of their passing you will inherit the property with a stepped-up basis. If you then sell the property you will avoid the capital gain tax (federal and state) on those assets. 

If you have any questions please give us a call at 631-547-1040