For calculating the amount given as gifts to individuals, how are the recipients of a monetary gift determined?

[dopong]

Can a check of, say 20,000.00, made to one a person be considered (for gift tax purposes) as a gift to that person and his/her sibling, or his/her spouse, because the gift was intended for them and not just the person the check was made to.?

[DianeW · Accepted solution]

Yes, as long as you can show clear evidence that it was intended for more than one person, as well as the reason why a check was written to only one person.  Also, when it comes to a married couple there is a "gift-splitting" that comes into play.  If you are married, then you and your spouse can each give a gift up to the maximum per year ($14,000 for 2016) to one person.  

Likewise, each spouse should write a separate check for the annual exclusion gift amount, rather than have one spouse write a single check for $28,000 to one individual recipient. As far as the IRS is concerned, the spouse who writes such a check has exceeded the annual gift tax exclusion amount and therefore must file a gift tax return. It is still possible to claim “gift-splitting” on the gift tax return, which treats the gift as if half came from each spouse even though only one wrote the check. A spouse who has considerable separate property can double up on the annual exclusion gifts to individual beneficiaries, so long as the other spouse is willing to sign the gift tax return to exercise the “gift-splitting” option. The gift tax return must be filed to claim this. A joint account would indicate both signed as well.