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

[BeastMode335i]

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]

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

[bimmette]

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

[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.

[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.)

[Biorin]

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]

Originally Posted by Biorin

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]

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]

Originally Posted by F87LUV

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]

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]

Or, you could just get Lups to buy some goats

[shoei]

Originally Posted by F87LUV

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

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

[F87LUV]

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]

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]

Originally Posted by shoei

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

Good point, indeed.

[jtodd_fl]

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]

Originally Posted by jtodd_fl

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]

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]

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]

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]

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]

Uh oh...