Need advice on gifting a large amount of money (Bankers, CPA, CFO, etc needed plz)

BeastMode335i · 07-26-2016, 03:31 PM

Ok so just to keep it short and sweet.. My immediate family member hit $2m on the lottery.. They want to gift me $100k but read that in Florida (maybe the whole USA even) there's a tax that has to be paid on gifting over $14k a year to any one person.. Well then Wells Fargo mentioned something about a Promissory Note to avoid paying the gift tax but this family member is a bit confused on the legality of the two so I'm hoping any of my bimmer bro's can help me out.. Have any of yall been gifted a large amount of money and avoided paying uncle sam 30% of it..?? I'm not really looking at doing anything illegal or trying to get us in trouble, but if there's a way around something, that is totally legal, than why not.. Obviously if my mom gave me $100k after winning $2M she doesn't expect me to pay her back, but apparently that's what a Promissory Note does so she wouldn't have to gift me $14k a year for 7.5 years..

Thanks!

Delta0311 · 07-26-2016, 03:33 PM

Have money stashed overseas... Helps if you have a dual citizenship.

bimmette · 07-26-2016, 03:34 PM

Just putting it out there that I need LCI tail lights if you're feeling generous

F87LUV · 07-26-2016, 03:36 PM

If this family member is not wealthy to begin with and doesn't have assets over $5M already (and never will), they won't have to pay a gift tax. Individuals have a lifetime exclusion. For 2016, it's $5.45M. They would need to file a gift tax return for the excess of $14,000 and take the remainder from their lifetime exclusion. No tax will be due from either party.

Edit: if this person is married, they can also split gifts and give $28,000 to each person without tapping into their lifetime exclusion every year.

jtodd_fl · 07-26-2016, 03:41 PM

I am not a financier, but -redacted stupid amateur stuff since real answers were given later and I don't want to confuse people - ASBSECU E93 OR Biorin may be able to point you to some resources. They iz smart.

Oh... or @f87LUV... who knew... (Sorry luv.)

Biorin · 07-26-2016, 03:44 PM

Quote:

Originally Posted by F87LUV

If this family member is not wealthy to begin with and doesn't have assets over $5M already (and never will), they won't have to pay a gift tax. Individuals have a lifetime exclusion. For 2016, it's $5.45M. They would need to file a gift tax return for the excess of $14,000 and take the remainder from their lifetime exclusion. No tax will be due from either party.

Edit: if this person is married, they can also split gifts and give $28,000 to each person without tapping into their lifetime exclusion every year.

This!

Do you do tax as well?

F87LUV · 07-26-2016, 03:45 PM

Quote:

Originally Posted by Biorin

Quote:

Originally Posted by F87LUV

If this family member is not wealthy to begin with and doesn't have assets over $5M already (and never will), they won't have to pay a gift tax. Individuals have a lifetime exclusion. For 2016, it's $5.45M. They would need to file a gift tax return for the excess of $14,000 and take the remainder from their lifetime exclusion. No tax will be due from either party.

Edit: if this person is married, they can also split gifts and give $28,000 to each person without tapping into their lifetime exclusion every year.

This!

Do you do tax as well?

Yes ma'am. I'm a CPA and also in the process of becoming a CFP. You?

ASBSECU E93 · 07-26-2016, 03:49 PM

Or.....the jackpot winner could open a joint account with you and you could simply write checks or transact on the account without ever having sole possession of the $$$.

ASBSECU E93 · 07-26-2016, 03:50 PM

Quote:

Originally Posted by F87LUV

Quote:

Originally Posted by Biorin

Quote:

Originally Posted by F87LUV

If this family member is not wealthy to begin with and doesn't have assets over $5M already (and never will), they won't have to pay a gift tax. Individuals have a lifetime exclusion. For 2016, it's $5.45M. They would need to file a gift tax return for the excess of $14,000 and take the remainder from their lifetime exclusion. No tax will be due from either party.

Edit: if this person is married, they can also split gifts and give $28,000 to each person without tapping into their lifetime exclusion every year.

This!

Do you do tax as well?

Yes ma'am. I'm a CPA and also in the process of becoming a CFP. You?

Big brain #1 and Big brain #2!!!

You ladies rule

F87LUV · 07-26-2016, 03:50 PM

Quote:

Originally Posted by jtodd_fl

I am not a financier, but -redacted stupid amateur stuff since real answers were given later and I don't want to confuse people - ASBSECU E93 OR Biorin may be able to point you to some resources. They iz smart.

Oh... or @f87LUV... who knew... (Sorry luv.)

Lol. It's ok. My beauty is misleading. Who knew?

UncleWede · 07-26-2016, 03:50 PM

Or, you could just get Lups to buy some goats

shoei · 07-26-2016, 03:51 PM

Quote:

Originally Posted by F87LUV

Quote:

Originally Posted by jtodd_fl

I am not a financier, but -redacted stupid amateur stuff since real answers were given later and I don't want to confuse people - ASBSECU E93 OR Biorin may be able to point you to some resources. They iz smart.

Oh... or @f87LUV... who knew... (Sorry luv.)

Lol. It's ok. My beauty is misleading. Who knew?

Probably because it's covered by the size of your ego ?

F87LUV · 07-26-2016, 03:52 PM

Quote:

Originally Posted by ASBSECU E93

Or.....the jackpot winner could open a joint account with you and you could simply write checks or transact on the account without ever having sole possession of the $$$.

If I won $2M and i was only giving you $100k, no way you're getting access to that account.

jtodd_fl · 07-26-2016, 03:53 PM

Quote:

Originally Posted by shoei

Probably because it's covered by the size of your ego ?

Whoa...

Did I do it right, young shoei ? Am I cool now?

F87LUV · 07-26-2016, 03:53 PM

Quote:

Originally Posted by shoei

Quote:

Originally Posted by F87LUV

Quote:

Originally Posted by jtodd_fl

I am not a financier, but -redacted stupid amateur stuff since real answers were given later and I don't want to confuse people - ASBSECU E93 OR Biorin may be able to point you to some resources. They iz smart.

Oh... or @f87LUV... who knew... (Sorry luv.)

Lol. It's ok. My beauty is misleading. Who knew?

Probably because it's covered by the size of your ego ?

Good point, indeed.

jtodd_fl · 07-26-2016, 03:54 PM

Quote:

Originally Posted by F87LUV

If I won $2M and i was only giving you $100k, no way you're getting access to that account.

I'm guessing he meant a joint account with only $100K in it

F87LUV · 07-26-2016, 03:55 PM

Quote:

Originally Posted by jtodd_fl

Quote:

Originally Posted by F87LUV

If I won $2M and i was only giving you $100k, no way you're getting access to that account.

I'm guessing he meant a joint account with only $100K in it

Oh, MY bad. Please forgive me.

But i still see a gift tax issue if it's a joint account with a non spouse.

Biorin · 07-26-2016, 03:55 PM

Quote:

Originally Posted by F87LUV

Yes ma'am. I'm a CPA and also in the process of becoming a CFP. You?

I'll PM you.

ASBSECU E93 · 07-26-2016, 04:01 PM

Yea - F87LUV, that Big Brain status is now in jeopardy

Separate account with only the $100m funds, joint between the 2 specified account holders.

To further safe guard the larger account - the account would be housed in a completely different FI, so the larger could not 'accidentally' be accessed....

Biorin · 07-26-2016, 04:05 PM

Quote:

Originally Posted by ASBSECU E93

Yea - F87LUV, that Big Brain status is now in jeopardy

Separate account with only the $100m funds, joint between the 2 specified account holders.

To further safe guard the larger account - the account would be housed in a completely different FI, so the larger could not 'accidentally' be accessed....

$100m, now we talkin'.

F87LUV · 07-26-2016, 04:06 PM

Quote:

Originally Posted by ASBSECU E93

Yea - F87LUV, that Big Brain status is now in jeopardy

Separate account with only the $100m funds, joint between the 2 specified account holders.

To further safe guard the larger account - the account would be housed in a completely different FI, so the larger could not 'accidentally' be accessed....

But the moment the non spouse joint owner makes a withdrawal (in excess of annual exclusion), it constitutes a gift.

jtodd_fl · 07-26-2016, 04:08 PM

Uh oh...

07-26-2016, 03:31 PM	#1
BeastMode335i Maximus Decimus Meridius 1172 Rep 4,654 Posts Drives: F30 335i Join Date: Apr 2014 Location: Down South iTrader: (2)	Need advice on gifting a large amount of money (Bankers, CPA, CFO, etc needed plz) Ok so just to keep it short and sweet.. My immediate family member hit $2m on the lottery.. They want to gift me $100k but read that in Florida (maybe the whole USA even) there's a tax that has to be paid on gifting over $14k a year to any one person.. Well then Wells Fargo mentioned something about a Promissory Note to avoid paying the gift tax but this family member is a bit confused on the legality of the two so I'm hoping any of my bimmer bro's can help me out.. Have any of yall been gifted a large amount of money and avoided paying uncle sam 30% of it..?? I'm not really looking at doing anything illegal or trying to get us in trouble, but if there's a way around something, that is totally legal, than why not.. Obviously if my mom gave me $100k after winning $2M she doesn't expect me to pay her back, but apparently that's what a Promissory Note does so she wouldn't have to gift me $14k a year for 7.5 years.. Thanks! __________________ F30 335i Melbourne Red Metallic M-Sport Package
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07-26-2016, 03:34 PM	#3
bimmette YouTube.com/TvTara 6436 Rep 4,714 Posts Drives: like I stole it! (11 m3 E93) Join Date: Nov 2013 Location: Vancouver iTrader: (0)	Just putting it out there that I need LCI tail lights if you're feeling generous __________________ Watch my DIY mods at: YouTube/TvTara Follow me on Instagram at: TvTara1
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07-26-2016, 03:36 PM	#4
F87LUV Lieutenant General 3973 Rep 15,132 Posts Drives: '16 M2, '23 GT4 Join Date: May 2007 Location: NJ iTrader: (4) Garage List 2025 BMW Z4 M40i [10.00] 2016 BMW M2 [8.93]	If this family member is not wealthy to begin with and doesn't have assets over $5M already (and never will), they won't have to pay a gift tax. Individuals have a lifetime exclusion. For 2016, it's $5.45M. They would need to file a gift tax return for the excess of $14,000 and take the remainder from their lifetime exclusion. No tax will be due from either party. Edit: if this person is married, they can also split gifts and give $28,000 to each person without tapping into their lifetime exclusion every year. __________________ IG: Trackinheels
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07-26-2016, 03:41 PM	#5
jtodd_fl 2nd Asst to Dept Undersecretary 6709 Rep 1,298 Posts Drives: People crazy Join Date: Sep 2013 Location: Florida iTrader: (0) Garage List 2015 F82 M4 [9.00] 2016 F87 M2 [0.00] 2011 E92 M3 [0.00]	I am not a financier, but -redacted stupid amateur stuff since real answers were given later and I don't want to confuse people - ASBSECU E93 OR Biorin may be able to point you to some resources. They iz smart. Oh... or @f87LUV... who knew... (Sorry luv.) __________________ This space for rent. Last edited by jtodd_fl; 07-26-2016 at 03:47 PM..
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07-26-2016, 03:50 PM	#11
UncleWede Long Time Admirer, First Time Owner 18430 Rep 9,426 Posts Drives: G01 X3 M40i Dark Graphite Join Date: Jun 2005 Location: Oxnard, CA iTrader: (0)	Or, you could just get Lups to buy some goats
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07-26-2016, 03:33 PM	#2
Delta0311 Banned 7485 Rep 10,119 Posts Drives: 2011 BMW 335xi E92 2016 228xi Join Date: Apr 2009 Location: NJ iTrader: (1)	Have money stashed overseas... Helps if you have a dual citizenship.
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07-26-2016, 04:08 PM	#22
jtodd_fl 2nd Asst to Dept Undersecretary 6709 Rep 1,298 Posts Drives: People crazy Join Date: Sep 2013 Location: Florida iTrader: (0) Garage List 2015 F82 M4 [9.00] 2016 F87 M2 [0.00] 2011 E92 M3 [0.00]	Uh oh... __________________ This space for rent.
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