If I want to give my children 10,000 a piece do I pay a gift tax? Do they pay tax on the money giving? How do I give them the money? Can I write a check or does it need to go thru a lawyer? Are either party required to file a special tax return? Thank you so much for your help.
1 Answer from Attorneys
Re: Gift Tax
You may give up to $10,000 annually to as many people as you choose without gift tax consequences (married couples can give a total of $20,000).
The beneficiary pays no tax on the gift received.
If the gift is by check, you do not need a lawyer to help make the gift.
No gift tax return is required where the gift is $10,000 or less.