Do you trust your parents?

[Horace]

I thought gifts of > $10000 were taxable transactions.

[Aqua Letifer]

Like, in general?

No. No I do not.

[Copper]

Is this restricted to rich Americans?

[George K]

@Horace said in Do you trust your parents?:

I thought gifts of > $10000 were taxable transactions.

$17K per parent is the taxation limit.

IOW, I can give each kid $17K and so can Mrs. George - every year.

[jon-nyc]

In other words it’s not rich Americans who are bothering with this.

17k a year for a decade or two? Then you avoid capital gains on that bit? What does that mean to Bill Gates?

[Mik]

We are considering gifting our daughter now instead of waiting for her to inherit. As hard as it was for us to get started, it’s harder now.

[Axtremus]

Poor writer found a potentially interesting loophole to write about without understanding the use case.

[jon-nyc]

@Mik said in Do you trust your parents?:

We are considering gifting our daughter now instead of waiting for her to inherit. As hard as it was for us to get started, it’s harder now.

I like that and may well do the same. Maybe I already did by funding his 529 to half a mil before he was a teenager.

But that’s quite different than what this describes, which is basically a minor regulatory arbitrage that saves someone with appreciated shares maybe 3k a year.

[Mik]

It’s really more upper middle class tactic than rich, but at a certain level it could work.

Once we hit RMD we, like now, will have more income than we need to live comfortably. I think helping her out will be a good use of some of that.

[George K]

@Mik said in Do you trust your parents?:

Once we hit RMD we, like now, will have more income than we need to live comfortably. I think helping her out will be a good use of some of that.

THat's what we do. D3 commented that she's finding much more helpful than receiving a lump when we kick.

She doesn't want to wait 40 years.

[Mik]

40 years. It could happen.

But yeah, maybe taking over her student loan payments.

[Friday]

Not only do I trust my parents, I trust my in-laws as well.

But they give us money. The funny thing is my parents don't give my brothers money.