Money from Grandma?

UCLA77
Mon, 10 May 2010 22:09:57 +0000

Yes, Marzies, under the UTMA in your state, she will have to do it that way.

Some of the posters above gave you a little outdated info. This year (and next) the amount that can be given without the imposition of a gift tax is $13,000 per donor. She may want to file Form 709, but doesn’t have to if it’s under that amount. Alternatively, if she wants to contribute more than that amount, she can either do so, file Form 709 and use the excess as a reduction in her lifetime unified credit (and pay nothing in gift tax – it just reduces the size of her lifetime credit by the excess); or if in excess, pay the tax, which this year has been reduced to 35%.