So, both of my parents can gift my husband and I 12,000 a year. So that's a total of 48,000 a year. What about for my newborn daughter? Can they gift her 12,000 each as well...even though she's a baby? So can we techincally, legally, get 72,000 a year?
2007-04-20 05:40:51 · 3 answers · asked by heathjs21 2 in Business & Finance ➔ Personal Finance
The reason I ask is we want the money to pay off our house. Can we put her name on our checking account and work it that way?
2007-04-20 05:45:17 · update #1
Yes, they can give you $72,000 without having to pay gift tax, BUT the $24,000 to your daughter must go into an account for her benefit. Most states allow accounts designated as something like "Uniform Gifts to Minors" in which someone (usually parent or guardian) manages the account for the child until they reach 18 or 21.
As I understand it, you can use that money to pay for things for HER - clothing, dance classes, piano lessons, school tuition, etc. - but you cannot use it for YOUR benefit (e.g. buying a house, car, boat, etc.). Since the money is hers, if you take it and use it for something for you, that's essentially stealing from your own child and is against the law.
2007-04-20 07:56:34 · answer #1 · answered by Dave W 6 · 0⤊ 0⤋
For your child you will need to put it in a trust that will allow you to act for the benefit of the child and also state that whatever is left over the remaining gift will be delivered in full upon your child reaching 21.
2007-04-20 07:24:53 · answer #2 · answered by Rao 2 · 0⤊ 0⤋
Yes you can. But make sure the money given to your daughter goes into an account in her name, not yours.
2007-04-20 05:43:54 · answer #3 · answered by Judy 7 · 0⤊ 0⤋