Legal Question in Tax Law in California

Yearly Cash Gift to a Son or Daughter

I understand I can gift each of my children up to $10,000 per year without tax consequence. Does this cash become part of "community property" that my son or daughter must share with their spouse(s), or does it become entirely their own to use as they see fit?

(Thank you in advance for your answer.)


Asked on 1/02/00, 11:46 pm

1 Answer from Attorneys
Leslie Beckhart Law Offices of Leslie Kent Beckhart

Re: Yearly Cash Gift to a Son or Daughter

As a legal matter, the gifts are your children's separate property. However, in the event of divorce it is frequently difficult to "track" where the gifts have gone, i.e., it could be argued that one of your children transmuted his or her separate property ro community property. Therefore, I often recommend that children keep the gift money in a separate account.

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Answered on 1/03/00, 7:00 pm


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