An individual can give $10,000 per year to as many individuals as he/she wants without incurring any tax consequences for either donor or recipient. No party would need to report the transaction on any tax forms. Therefore, he should give you and your husband each $10,000 separately and $5,000 to your son.If he gives more than $10,000 to any one of you, he needs to file a Form 709 (Gift Tax and Generation-Skipping Tax Form). He won't owe any gift tax at this time, but the amount of the gift over $10,000 will use up part of his lifetime unified estate tax credit. Depending upon his net worth at the time of his death, this may or may not make any difference as to whether his estate owes estate tax.Angelbuggy, E.A.
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