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
- Do you spend to deal with stress?
- How to live like a millionaire Video
- 5 financial strategies from King Solomon
- Combining loans before a mortgage application
- Should you sell to American Pickers?
- The benefits of volunteering
- 5 steps to negotiating a better and smarter deal
- How to grow savings fast
- 3 money beliefs that hurt your finances
- A cheat sheet on tipping do's and don'ts
- 7 times you can save money by spending money
- 3 tips to get -- and maintain -- the best deals on your cable and cellphone bills
- Money-saving secrets of the rich and frugal