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With regard to the monetary donations received by your wife and her siblings under The United States Tax Codethese monies are considered gifts' -- and, are not treated as taxable income with respect to any of the recipients -- your wife and her siblings, or their father.With respect to your wife and her siblings giving money to their father -- The United States Tax Code allows each individual to give $11,000 per year -- per person, to as many people as they wish -- without having to either pay a gift tax -- or file a report oneon the gifts given.What is more, each person also has a $1 million lifetime gift exclusion -- over and above the $11,000 annual per-recipient exclusion. Gift amounts in excess of the $11,000 annual per-recipient exclusion -- but under the $ 1 million $1 million lifetime gift exclusion must be reported -- but are not taxed. You will find more information contained in IRS Publication 950.Let me know if you need more input.Good Luck!