My father in law is going to have his trust managers transfer a sizable amount so I can pay off my mortgage. How do I avoid tax implications? Transfer direct to the bank?

Forum|Forum|5 years ago
December 2, 2020
2 replies
55 views

(Not my bank, but the mortgage holder)

TurboTax Online

Best answer by Anonymous_

For you, as the donee (recipient of the gift), there are no income tax consequences.

For your father-in-law, the only (likely) ramifications would be that he has to file a Form 709 (gift tax return), assuming the "sizeable amount" is more than $15,000.

See https://www.irs.gov/instructions/i709#idm140554828371904

Considering the fact that your father-in-law has "trust managers", he probably is well aware of the filing requirement.

Anonymous_Answer

Level 15

For you, as the donee (recipient of the gift), there are no income tax consequences.

For your father-in-law, the only (likely) ramifications would be that he has to file a Form 709 (gift tax return), assuming the "sizeable amount" is more than $15,000.

See https://www.irs.gov/instructions/i709#idm140554828371904

Considering the fact that your father-in-law has "trust managers", he probably is well aware of the filing requirement.

Opus 17

Level 15

The recipient of a gift never owes gift tax. It doesn’t matter whether the funds are transferred to your bank account or directly to the mortgage lender, it is still a gift to you.