I will soon receive an inheritance from my deceased father of approximately $200,000. I will place it into a joint account I own with my wife. We wish to give $100,000 each to our two adult children.
1. I understand that the federal limit for untaxed gifts is $15,000 per year. Can I give each kid $15,000 and my wife give each kid $15,000 per year and avoid taxes for us and the kids?
2. If the answer to this is yes, can I provide the kids each a single check from our joint account for $30,000, or must I sign a check for $15,000 and my wife sign a check for $15,000?
3. Do I have a reporting requirement to IRS?
4. Do the kids have a reporting requirement to IRS?
5. Are there state tax rules of concern? I live in Alaska, my daughter lives in North Carolina, my son temporarily lives in Japan, but Washington is his state of record.
