First, if and when gift tax is ever due, it is paid by the donor and not by the recipient of the gift. However, under current regulations, each taxpayer is allowed to give gifts in their lifetime of up to $1 million before any gift tax becomes due. This is part of what is called the Uniform Tax Credit Act.
In addition to the $1 million lifetime exemption, each individual is allowed to give annual gifts of up to $13,000 to any number of individuals, and those gifts do not even apply towards the lifetime exemption, nor do they need to be reported. Gifts which exceed the annual exclusion of $13,000 must be reported by the donor by filing Form 709 with the IRS to report the value of the gift. However, no tax is actually due unless that donor has already reached his $1 million lifetime limit. The amount reported then reduces that donor's remaining lifetime balance that he may give in non-taxable gifts.
What all of this means in your situation is that if the money you will be receiving is more than $13,000, then the person giving you this money needs to file Form 709 to report the value of the gift given to you. But no gift taxes would be due unless that person has already exceeded his lifetime limit of $1 million on gifts.
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Thank you alm and let me know if you have more questions.
Accountant
25+ years tax consulting. Specializing in returns for US citizens living abroad