My husband's grandfather passed away and his grandmother moved in with my in-laws. They are in the process of transferring all the money and assets out of grandfather's name and into my father-in-laws name. Grandma wants to sell her house and split the selling cost between my husband and I, and his sister so we can buy houses. So we will have roughly $125K coming to us.
My father-in-law said he wants to just buy our house in his name because he doesn't want to get hit on taxes for "gifting" us more than $13K in one year. I am thankful for the gift, but also don't want my home in someone else's name. I did some research and what I found is that if you "gift" under $13K to one person in one year you do not have to file a gift tax. If you "gift" more, you have to file, but you don't have to actually pay until you have reached your lifetime gift max of $1million dollars in a lifetime.
My father-in-law has never gifted cash, so is this true? Could he "gift" us the $125K for our house and just have to file the gift tax and not actually pay taxes on it?
We are in Ohio.
Thanks!