Skip to main content
Message Font: Serif | Sans-Serif
No. of Recommendations: 0
There are 2 boards on TMF which may have more info for you, Inheritance Strategies and Estate Planning and the Fool. This issue has been addressed on both boards and you may find your answer by just reading through the posts. There are a lot of helpful knowledgeable people on both boards.

If I am also giving similar amounts to their parents, will the gifts be taxed as income for the boys?

I don't believe the gifts will be taxed as income as long as you don't give more than $10,000 total each year. They might have income tax on the earnings/dividends from the $10,000, but that depends on a lot of variables. It probably would be best to discuss with the parents whether or not they want their children to have the money in the boys'names or not. If they have money, they might decide to rollerblade around the world or something instead of using it for college. <G> There are other tax consequences there along with any eligibility for financial aid for college.

Check those other boards. There is a lot of info on them that could give you some other ideas of what might be best for you and for your family.

I have gotten some very good planning advice from them.


Print the post  


What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.