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Stephen G.
Stephen G., Sr Income Tax Expert
Category: Tax
Satisfied Customers: 7024
Experience:  Extensive Experience with Tax, Financial & Estate Issues
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my uncle died and left my 3 sisters some money, they would

Customer Question

my uncle died and left my 3 sisters some money, they would like to give me an equal share. my question is what is the best way for them to transfer the money to me.
Submitted: 5 years ago.
Category: Tax
Expert:  Stephen G. replied 5 years ago.

Stephen E. Grizey :

Hi & thanks for using our service. I'll do my best to give you a complete & accurate answer. Please ask me to clarify anything you don't understand.

Stephen E. Grizey :

It depends upon how much you're talking about?

Customer :

about 40K from each sister

Stephen E. Grizey :

Well, once you go over $13,000. from each sister, it starts to get complicated.

Stephen E. Grizey :

Each individual has a lifetime gift tax exemption of $1,000,000. in total gifts in excess of the annual exclusion amounts; so there would be no gift or income tax due.

Stephen E. Grizey :

If your sisters are married, they could give you a total of $26,000. (each) a year, by their husbands joining in the gift; that requires a gift tax return to be filed but no gift tax is payable.

Stephen E. Grizey :

Beyond that, they would have to spread out the transfer between at least 2 tax years to avoid any more involved reporting.

Customer :

this is getting to complex for me, I think I would like to be face to face with someone. I would be more comfortable.

Stephen E. Grizey :

If you want to get the money all at once, you are probably going to need someone to prepare the gift tax returns; of course, realize that there is no reporting requirement on your part; it is the donor (your sisters) who must each file gift tax returns if they give you more than $13,000. in any one calendar year.

Stephen E. Grizey :

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I'll be happy to answer any follow-up questions you may have.