A mother with four children has one child who never marries, never leaves home, etc. She grows increasingly senile but still in sound mind:
Mother gives her $150,000 home, $400,000 in cash/equivalents, and $300,000 in farmland to the one son who has stayed home and taken care of the home and farmland. She is angry with the other children because they never come home to see her, so she leaves the other three children nothing. That's right, zero.
A typical Gift Tax, form 709 is prepared for the $850,000 described above. Her basis in all the above is $500,000 which becomes the son's basis (not sure this is relevant). The 709 is filed for calendar year 2007.
The other children are naturally livid, and take this arrangement to court. Two years later, a judge awards to the son the home and farmland, but reverses the intent of the mother by splitting the $400,000 in cash among all four children.
Does this constitute an amended Form 709? If so, how is this accomplished? There is no "amended" box to check on the form, and there is no such form as 709-X.
Mother gives her $150,000 home, $400,000 in cash/equivalents, and $300,000 in farmland to the one son who has stayed home and taken care of the home and farmland. She is angry with the other children because they never come home to see her, so she leaves the other three children nothing. That's right, zero.
A typical Gift Tax, form 709 is prepared for the $850,000 described above. Her basis in all the above is $500,000 which becomes the son's basis (not sure this is relevant). The 709 is filed for calendar year 2007.
The other children are naturally livid, and take this arrangement to court. Two years later, a judge awards to the son the home and farmland, but reverses the intent of the mother by splitting the $400,000 in cash among all four children.
Does this constitute an amended Form 709? If so, how is this accomplished? There is no "amended" box to check on the form, and there is no such form as 709-X.
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