Q: Inheritance, Gifting
If a parent sells 2 owned real estate properties to her children equally many years before she died, is it still considered inherited property? If the property is sold, are the proceeds still considered inheritance?
If financial disbursements are made from an estate while the individual is still alive (for tax purposes), is that considered a gift? If property was bought with a disbursement of funds is that property then considered a gift?
A:
If the property was sold during the parent's lifetime, then it is not inherited property. If the property is subsequently sold, the proceeds are not considered an inheritance.
Please be aware that there are tax implications related to such a transfer, and you should consult with an attorney prior to making any such transfer.
While an individual is alive, there is no estate. If financial disbursements are made, it is considered a gift. If real estate is purchased in another person's name, or purchased and then transferred to another person, it is considered a gift.
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