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@ZDR_ZDR wrote:

Would this count as a gift, and thus untaxed?

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It would be a gift and not subject to federal income tax. Under certain circumstances, a Form 3520 might be required to be filed.

See https://www.irs.gov/instructions/i3520#idm139776174455584

Thank you!

Couple of follow up questions here:

1. Since they are minors, if I do need to file Form 3520, do I have to file on their behalf?

2. If the Trust is co-owned (apologies for loose terminology) by both grandparents, is the limit to not having to file double the ~15k? I.e. can they receive that amount from each grandparent, bringing the total to ~30k?

Thanks again!

1. Yes, you would file on their behalf (as their representative).

2. The annual gift tax exclusion is per person, per donee. So an individual can gift up to $15,000 (during the 2019 tax year) to a specific donee. Thus, two parents (grandparents or whatever) could give up to $30,000 to each of their children (i.e., $15,000 from each parent) without having to file a gift tax return or otherwise pay gift tax on that amount. Note that the gifts should be separate, not commingled.

Thank you!