Can my minor children receive a gift from their great aunt that is excluded from the gift tax?
May 4, 2008 4:08 PM Subscribe
Can my great aunt make a $12,000 gift to me, my wife, and each of our two kids (for $48,000 total) without incurring the gift tax?
posted by Duluth?! I Hardly Know Her! to law & government (12 answers total)
My (very generous) great aunt would like to give gifts to various extended family members but wants to be careful with the gift tax. From my research online, it seems beyond a doubt that she can give up to $12,000 per donee per year without triggering any gift tax or any obligation to report the gifts to the IRS.
The one question that I cannot find a straight answer on is whether she can give $12,000 to each of my 2 minor children and have that count separately from her gifts to me and to my wife. It seems to me that the answer is yes - I cannot find anywhere that the answer is no - but confirmation of this specific fact situation has eluded me.
If it matters, my family will use the combined money, including the kids' portion, immediately; it will not go into trust or into an account for when the kids turn older. Instead, we will use the money to fund improvements on our house that we have been deferring because we couldn't afford it. So when the money came in, I would sign my check for myself and sign the kids' checks on their behalf, deposit the money into our family's checking account, and then hand it over to a contractor.
Thanks for whatever help you can offer. I acknowledge that I should consult an independent professional and that if you are a lawyer or accountant you are not mine and you are not offering advice.