Have a Tax Question? Ask a Tax Expert
Hello and thank you for contacting Just Answer. We appreciate the opportunity to be of service to you.
You will have no tax liability for the gift you received, however your grandfather will have to file a Gift Tax Return because the gift exceeds the 2007 limit of $12,000. If your grandmother is alive that limit would go to $24,000. In either case the limit is exceeded and the return must be file. Whether the giver has to pay a tax is determined by the Unified Credit per gift per person of $345,800. Here is a link to IRS Pub 950 that covers Gift Tax:
Here is another link to an overview of the subject:
If you have any follow-up questions please contact me.