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Hi, my name is Mark. I will be happy to help you with this questions. From your standpoint as long as your sister is a US citizen you do not have to do anything. The amount is not taxable to you since it is a gift. Your sister would have to complete form 709. A few years ago the government combined both the gift tax and estate tax exemptions together. Your sister would need to reduce her lifetime exemption by the amount of the taxable gift ($100,000 less $14,000) of $86,000. The current amount of the exemption is 5.45 million. So as long as your sister has not made taxable gifts in excess of this amount there would be no taxes on her end either.
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