Simi Valley, CA asked in Estate Planning, Tax Law, Banking and Probate for California

Q: What to do w/lrg physical cash gift from an elderly relative? Legal, banking & IRS implications? Best courses of action.

My Uncle is 97 and intends to gift me a large amount in physical 'hard' cash either now or as an inheritance upon passing. He is admirable to whichever is more advisable. I desire to avoid a bank account freeze or other legal nonsense upon depositing of said funds i.e. 'fiat' currency. Please advise. Thnx for your assistance.

3 Lawyer Answers
Nina Whitehurst
PREMIUM
Nina Whitehurst pro label Lawyers, want to be a Justia Connect Pro too? Learn more ›
Answered

A: Ask him to buy gold with the cash and then give the gold to you. He should report the gift to the IRS and provide you with a copy of the gift tax return. That will help you establish your basis in the gold.

A: There are many different ways to accomplish your objectives and each way has different tax implications. Depending on the amount a person wants to give away, he could give a gift of up to $17,000 (in 2023) per year without taxes. The recipient does not need to be a relative. But, if a person gives someone more than that amount in gifts in a year — including birthday, Christmas, graduation and all other gifts given that year — then the person giving the gift must file a gift tax return even if no gift tax is due. The money could also be given through a trust or will, depending on the giver’s estate plan. Have your uncle contact his estate planning lawyer to get more specific tax information tailored to his circumstances.

1 user found this answer helpful

James L. Arrasmith
PREMIUM
James L. Arrasmith pro label Lawyers, want to be a Justia Connect Pro too? Learn more ›
Answered

A: Under federal law, large cash gifts are allowed, but be aware of IRS gift tax rules. Banks will report cash deposits over $10,000, so it's wise to notify your bank before making a large deposit. Ensure you have documentation regarding the origin of the gift to address any future inquiries.

Justia Ask a Lawyer is a forum for consumers to get answers to basic legal questions. Any information sent through Justia Ask a Lawyer is not secure and is done so on a non-confidential basis only.

The use of this website to ask questions or receive answers does not create an attorney–client relationship between you and Justia, or between you and any attorney who receives your information or responds to your questions, nor is it intended to create such a relationship. Additionally, no responses on this forum constitute legal advice, which must be tailored to the specific circumstances of each case. You should not act upon information provided in Justia Ask a Lawyer without seeking professional counsel from an attorney admitted or authorized to practice in your jurisdiction. Justia assumes no responsibility to any person who relies on information contained on or received through this site and disclaims all liability in respect to such information.

Justia cannot guarantee that the information on this website (including any legal information provided by an attorney through this service) is accurate, complete, or up-to-date. While we intend to make every attempt to keep the information on this site current, the owners of and contributors to this site make no claims, promises or guarantees about the accuracy, completeness or adequacy of the information contained in or linked to from this site.