@ZDR_ZDR wrote:Would this count as a gift, and thus untaxed?
It would be a gift and not subject to federal income tax. Under certain circumstances, a Form 3520 might be required to be filed.
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?
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.