Giving a relative a monetary gift? It might get taxed
It's the one-size-fits-all gift that always fits: money. Who doesn't want to receive a generous gift from a rich relative? And who doesn't daydream about winning the lottery and sharing the bounty with a few friends or family members? For wealthy individuals, gifting is a tool used to pass along their affluence without incurring hefty estate taxes. Plus, they can actually watch their loved ones enjoy it. But gifting has spawned a handful of pervasive money myths. Experts share the top five.How to Give a Tax-Free Gift
"To give a tax-free gift of $13,000 or less to a person, does it have to be a relative or can it be anyone? For example, would my daughter's husband be eligible?"
Low Rate on Family Loan can Trigger Gift Tax
"I plan to lend a family member a sum of $30,000 and need to know what interest rate I should be charging him. He will be paying the loan back within six months."
Trending on TDS
- Could social media be causing you to overspend?
- Save or pay down hospital bill? Video
- Frugal doesn't always mean getting the cheapest
- A financial safety net for single moms
- Why saving money doesn't have to be a drag any more
- How investing style changes over your lifetime
- 5 poor ways to save (and how to do better)
- What to do if your credit card rate goes up
- 3 steps to rebuilding an emergency fund
- 5 big bills you can cut fast
- Money-saving secrets of the rich and frugal
- Reduce your debt with this free debt course by The Dollar Stretcher
- Reduce your debt payoff time
- Find a better credit card rate
- Get better savings & MMA rates