I have a question that may need clarification.
My parents paid a large portion for my nieces (their granddaughter's) house. It was significantly about the $15000 year limit per parent for gift taxes.
It's my understanding that they need not file the 709 gift tax and this gift would come out of their other son's and granddaughters inheritance. So it is essentially deducted from the inheritance instead of paying any gift taxes. That is also how I understood it from people I know who live in CA and have done that with their kids/grandkids.
Am I correct in that it will come out of their inheritance?
Please let me know.
