How did you gift $$ to your kid?

[wanaberetiree]

My son is getting married and we will gift him and his soon-to-be-wife a sum of money.

We have him as a co-owner of 2 accounts. We used this when he was in college to fund him with money.

I am curious about how other people actually gifted kids money.

Did you write a check making sure that it's within IRS limits, did you transfer money to a co-owned account and let your kids move money from there? Other ways?

Thanks!

[youbet]

Since you're not asking about how to maximize the gift without exceeding IRS limits for the gift tax exclusion, I'm a bit confused as to what you actually want to know.

As far as the simple mechanics, and that seems to be what you are asking, we do it 3 ways:

1. Write a check.
2. I have full POA on his accounts at Schwab. I can transfer money on-line from my Schwab brokerage account to his brokerage account. So, for example, if I want to fund his IRA, I can transfer money from my borkerage account to his brokerage account and then transfer money from there to his IRA.
3. Hand him some cash. This is very popular with both son and DIL.

In your case you want to make a wedding gift. Why not just write a check?

If your question is really about exceeding the IRS gift exclusion limits without filing the forms and using part of your lifetime exemption, just say so........ There are tons of ways to do this, espcecially when you're talking about middle class sums of money, and I'm sure we'll see some interesting, humorous and creative examples!

[Cessna5354]

All the above, as well as

Buy a car and let them have your former car, buy physical gold and put it mistakenly in their safety deposit box.

I have a friend who does this, I would not skirt IRS rules.......

[wanaberetiree]

OK, how to maximize a gift an interesting question.

Also, did you or your kids have to report it on tax returns?

[youbet]

You and DW can each gift your son and new DIL each $14k annually with no paperwork or reduction in your lifetime gift exemption. That's $56k annually. Did you want to gift much more than that? Would giving them $56k per year do it for you?

If you are wealthy and want to gift more faster, I'd talk to a pro.......

[travelover]

Loan him money.

[ohyes]

We are too poor to gift money, but we have paid for emergencies for all three of our adult children - major car repairs (safety issues) and a biopsy on a much loved pet.

Just last week, I heard on a radio show how you should never put anybody else's name (your child was used as an example) on your bank account.

The reason given: If that other person is sued (car accident was given as an example), your bank account (with their name on it) can be taken. I would miss that $500.00.

I don't know how true that is, but it caught my attention.

[Animorph]

By check, but usually through an online payment that sends the check. Works both ways. PITA depositing checks though.

[Moemg]

I have gifted my daughter twice . I just wrote a check and put it in a card .

[LOL!]

We gave shares of stock saving us the cap gains tax. The kid was in the 0% tax bracket and owed no tax on the sale of the shares.

This also forced the kid to open a brokerage account to receive the shares and to learn how to sell stock. A great life lesson.