Legal Question in Wills and Trusts in Arizona
My mother wants to gift both my sister and I with money - what is the procedure? How much can she gift without income taxing? Is there a form that needs to be completed?
Asked on 12/28/10, 1:13 pm
1 Answer from Attorneys
Donald Scher
Donald T. Scher & Associates, P.C.
Your mother can give each of you $13,000 per year without taxation and without filing a gift tax return. This is the annual gift tax exclusion amount. There is also a lifetime exemption amount which would require the filing of a gift tax return, even though no tax may be payable. If she intends to give you substantial amounts of money, she should consult with an attorney before she adopts any gift giving plan, so that it can be done correctly, and minimize any taxes due, and at the same time, protect her interests while she is helping you.
Answered on 1/02/11, 8:33 pm
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