Empty 1017 a grandfather gave me life estate to his grandson any remainder estate to his granddaughter each interests is valued at $13000 the grip gifted the granddaughter is who is for
The remainder estate given to grandaughter is taxable.
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Explanation:
As per the applicable rules, the remainder interest cannot be treated as a gift in the year in which the estate is transferred as the benefits of such interest would accrue in the future. Only gifts which result in accrual of benefits in the year of transfer will be subject to the rules of gift tax exclusion. Therefore, the value of life estate transferred to grandson will be exempt from tax. But the value of remainder interest given to granddaughter will be taxable.
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