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A friend would like to make a 35k gift to a family member this calendar year.
Has anyone done something similar? How was the process?
Is it pretty straight forward or is it one of those things, where he has to get Lawyers, Tax people and IRS (IRS Tax forms) involved to do it right?
He is mostly interested in the practical aspects of it ... and so on. He is in his early 40s and the person receiving the gift is a student in his 20s. Gift would be monetary cash.
You can gift above the annual exclusion limit so long as you the person gifting reports the gift and files it against your lifetime exemption, if you choose to not apply it against your lifetime you will pay tax on he amount over the annual limit
It is well worth the cost to have a competent tax CPA or attorney complete Form 709!
Probably not if you are talking about a 35,000 cash gift from some one that will not give away 5,000,000+ in his lifetime or have an estate when added to gifts does not exceed about 5 million.
The point is there is very little risk to gifts made by most of us so even if the form is done wrong there will probably not be a problem.
If you are confused about how to fill in the form ask a friend for help. It is not difficult to file.
If you have a large estate and are going to start on a gift program you might want to consult with a CPA but for the original question and facts a CPA would not be neede.
Note if the giver is married then you can give more.
This presumes the spouse knows about this arrangement.
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