A couple can also give an additional gift of up to $15,000 to each son-in-law or daughter-in-law. (The yearly gift limit is $14,000 per individual, so each of your parents could gift you $14,000 for a total of $28,000) If gifts are kept under the limit, then there is no need to file a gift tax return. My parents are planning to transfer quite a substantial amount (100k+) to my bank account. – Gifts of $15,601 or more from foreign corporations or foreign partnerships (including from people related to these corporations or partnerships). So when you *do* die, your heir can inherit a maxmimum of $5,100,000 since they already have $100K that you gifted to them prior to your death. So, while you would have to file a gift tax return, you would only be responsible for taxes on $15,000 of the $30,000—or you can apply it to your lifetime gift exclusion (more on that in a minute). If you could wait until the first of 2012 to gift him the other $7K, then you would not have to pay gift tax. Giving money to children – even adult children – carries a personal benefit as well as a tax benefit for parents. My mum is selling her house and wants to gift me £100,000 as an early inheritance. OR, if you’re married, you and your wife could both gift him $13K without being taxed. I've read that gifts are generally non taxable, but in this particular case I just needed to make sure. In other words, if you give each of your children $11,000 in 2002-2005, $12,000 in 2006-2008, $13,000 in 2009-2012 and $14,000 on or after January 1, 2013, the annual exclusion applies to each gift. If you don’t, the IRS can say the interest you should have charged was a gift. In that case, the interest money goes toward your annual gift giving limit of $14,000 per individual. If your estate will be above the exemption, you may wish to lend the money and gift the maximum annual amount; as others noted, this could repay the loan in four years. – Gifts or bequests valued at more than $100,000 from a nonresident alien individual or foreign estate. Also, if your son is married, you could him $13K and give his wife $13K and not have to pay gift tax. So, originally the money was lent to my aunt where it's used for her business (in australia). I don't believe that it could be this simple so does anyone have any advice? Many thanks And as an added bonus if you’re married, each spouse is entitled to the $15,000 exclusion. Your parents will NOT pay gift tax unless they have already used up their lifetime exemption (which is unlikely - … The answer will depend upon whether your estate is likely to exceed the exemption. If you give more than $14,000 to one individual, you are required to file a gift tax form. The annual exclusion applies to gifts to each donee. Can she just give me this money and what are the tax and legal implications. Also, can I just open a saving account and pay this large amount in? Now in your case, you can split the gift between you and your wife, with your wife giving $50K to one child and you giving the other $50K to … The IRS will charge all taxable gifts over the $5 million lifetime limit at the gift … Over your lifetime, you are allowed to exclude up to $5 million worth of taxable gifts from your taxes meaning you can make up to $5 million worth of taxable gifts throughout your life without owing any taxes. There is a flat £3,000 limit each year for gifts, which can be carried over to the following year if you don’t use it, meaning up to £6,000. If it is not, you can gift the entire $100,00 and use a portion of your credit. Per individual annual gift giving limit of $ 14,000 per individual people related to these or... 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