Cash gift to sons

[MichaelB]

This is a generous gift. I too like ivinsfan’s suggestion. A personal check alongside something to remember their father. Perhaps a small about of cash for the wow factor, but I favor a modest and simple approach. The gift and memories are center stage and don’t need any help.

 

[ncbill]

The box of cash is a clever and dramatic idea, subject to all the comments here.

If you do decide to go that way, I'd talk to your bank branch manager ahead of time to get the cahs and to arrange that the kids can bring their cash boxes back to the branch and get the cash turned into deposits or cashier's checks. That should grease a lot of the procedures the the bank is required to go through.

Any bank will be happy to have the opportunity of meeting people with $100K in available cash, so the branch manager will be happy to help. He will probably try to sic the bank's financial advisors on the kids, so they need to be fireproofed against that.

As a former banker I doubt any branch manager would be willing to order $100,000 in cash, at least for us plebeians.

But an alternate, fun currency gift would be to include a bunch of $2 bills.

 

[samm]

BAD IDEA!!
This will attract IRS attention and possible investigation. Banks are required to report anyone engaged in unusual transactions, especially cash.

FS-2019-1, February 2019

Federal law requires a person to report cash transactions of more than $10,000 by filing IRS Form 8300 PDF, Report of Cash Payments Over $10,000 Received in a Trade or Business. The information on the form helps law enforcement combat money laundering, tax evasion, drug dealing, terrorist financing and other criminal activities.

https://www.irs.gov/newsroom/cash-p... law requires a person,in a Trade or Business.

 

[kgtest]

I tried to get $10k out from my bank and they put up a little bit of a fight, stating that the bank doesn't actually keep that kind of cash accessible at the bank. The deposits of cash are auto-locked, and they stated if I needed anymore I would have had to file some sort of form ahead of time and they would need to order the cash ahead of time from the federal reserve.

100k cash gift would be an incredible gift. I would immediately put it into my broker account if I received it.

 

[Chuckanut]

As a former banker I doubt any branch manager would be willing to order $100,000 in cash, at least for us plebeians.

But an alternate, fun currency gift would be to include a bunch of $2 bills.

My cousin Vincente can get you $100,000 cash easily, and the banks and law enforcement don't have to know a thing about it. There is a small fee - you will owe Vinny a 'favor' at some time in the future. Don't worry. [-]No body[/-] Nobody will know nuthin.

 

[Chuckanut]

A few years ago one of my kids bought a car from a guy who was leaving the state the next day. He requested cash, not a check. We had to go to three different bank branches of the same bank to withdraw the needed cash. Not one bank had the approximately $15,000 available.

Today, I really wonder about that transaction. But, all the paperwork was OK and there were no repercussions. If it came up again, I think I would politely decline.

 

[Time2]

As has been said, Cash is a bad idea.Cops Seize Combat Vet's Life Savings

 

[steelyman]

When I was working, our business office had accountants who were very helpful in preparing budgets for grant applications. If you had a successful grant, one of them stopped by with a gift coffee mug: $1 million bill with Teddy Roosevelt on the face. I have no idea if TR actually appeared on such a bill but it was a fun gift.

 

[RunningBum]

In about a year or so, an annuity that DW has will mature. She wants to gift the proceeds of about $100K to each son.

However you decide to do it, I hope you share the experience here after you do it next year. It's a wonderful gift, and the presentation is definitely something to have fun with.

 

[Car-Guy]

Some of these posts crack me up... I can certainly understand the concerns with "carrying" that much cash, but not in getting money out or putting money in the bank... The bank I deal with is in a really small town and I know I have made at least a dozen cash transactions (deposits and withdrawals) in the 50 to 100k range over the past ~ten years and I have never had a problem. (I mean zero issues) In full disclosure they know me pretty well and my "business/activities". I also usually let them know a day or so before I plan to make a large cash withdrawal, but it's always been there. Large cash deposits have never been a problem... I know they fill out a CTR when I deposit anything over 10k (but so what) it's never been a problem. And, I have never had the IRS, FBI or CIA contact me by phone, mail or in person regarding these transactions. It's all been legal so I don't care if they do know and/or call.


I no longer have the need to deal with such large amounts of cash so maybe things have changed in the last few years but if so, it has been very recent.

 

[ivinsfan]

Some of these posts crack me up... I can certainly understand the concerns with "carrying" that much cash, but not in getting money out or putting money in the bank... The bank I deal with is in a really small town and I know I have made at least a dozen cash transactions (deposits and withdrawals) in the 50 to 100k range over the past ~ten years and I have never had a problem. (I mean zero issues) In full disclosure they know me pretty well and my "business/activities". I also usually let them know a day or so before I plan to make a large cash withdrawal, but it's always been there. Large cash deposits have never been a problem... I know they fill out a CTR when I deposit anything over 10k (but so what) it's never been a problem. And, I have never had the IRS, FBI or CIA contact me by phone, mail or in person regarding these transactions. It's all been legal so I don't care if they do know and/or call.


I no longer have the need to deal with such large amounts of cash so maybe things have changed in the last few years but if so, it has been very recent.

You do realize the total cash amount here is at least 200k......

 

[Car-Guy]

You do realize the total cash amount here is at least 200k......

Yep, I can't say that I recall withdrawing or depositing 200k or more "at one time" but I have been well over 100k several times. I think my biggest one time cash deposit was about 135. Never found any limits yet... Maybe it's 199

 

[SecondCor521]

Yep, I can't say that I recall withdrawing or depositing 200k or more "at one time" but I have been well over 100k several times. I think my biggest one time cash deposit was about 135. Never found any limits yet... Maybe it's 199

Do you by chance live in a large metro area and deal with a major bank like Chase? If so, that would make sense.

In smaller towns or with smaller branches or credit unions, I think it is more typical for them to have on the order of dozens of thousands of dollars on hand. And that's shared across all of their customers, so a single customer wanting $100K or $200K would be something the branch would probably have to take extra steps to accommodate.

I don't ask my branch how much cash they have on hand and I'm not going to google that because I don't want to appear to anyone like a bank robber. I'm not, of course, but I don't even want the hassle of suspicion.

 

[Jerry1]

You all do realize that were talking about Legal Tender - For All Debts Public And Private.

There may be some issues with a bank needing a heads up and there may be a form or two to fill out, but there is no restriction I'm aware of regarding how much cash you can transact or maintain for legal transactions.

Personally, I'd not likely give the gift in cash. I mean after all, they're probably just going to want to deposit it anyway. However, there's no law you can't stuff your mattress with cash.

 

[Car-Guy]

Do you by chance live in a large metro area and deal with a major bank like Chase? If so, that would make sense.

No, very small town....

 

[splitwdw]

I think the idea is neat, but a lot of drawbacks as you saw with the first response you got. Plus, would they be tempted to blow some of the cash on really dumb things?

How about a stack of monopoly or other play money totaling $100K, then an envelope in the bottom with the cashiers check?

Does Nestle still make the $100,000 bar? You could do something like wrapping that and giving it to them first, then the box with the play money, and then the check in an envelope or some other way.

Depending on your income level and theirs, it might be better to gift them appreciated stock if they can sell it with $0 cap gains. But I understand your wife might want a more direct correlation with the annuity from her father.

RunningBum, Thanks for the laugh regarding the candy bar. Needed one today. These are great ideas.
Most banks have a limit on how much cash they have on hand. I recently got $20,000. cash from my bank and I had to order it a few days in advance from my bank. I think the branch manager said the walk-in limit was $10,000. She said they wouldn't even do the $20,000. at the main office for someone just walking into the office.

 

[imnontrad]

Consider doling out no more than 30K (annual gift limit for a couple) for each year. And if they do not spend that responsibly, hold off on any more.

if hey have any kids, you could use this to fund the grandkids 529 accounts. you may get a state income tax deduction, a grandparent's account is not part of any FAFSA application and it would be a burden lifted off of the kids so they (hopefully) will save more for heir own retirement.

That being said, my parents decided over a period of years to pass on an inheritance they got and did not need. that money helped me to escape an abusive marriage and pay for college tuition to reenter the workforce. But if I had been gifted that money while married and co-mingled with joint funds, my ex would have gotten half.

 

[isisdave]

Besides downloading the image of a real bill and "rolling your own," you can buy fake-but-impressive ones on Amazon and ebay.

There are realistic ones and humorous ones. You can probably get the kids' photos put on them. They're like $4 for one, or $7 for five -- heck, if you need one, you need five!

I also like the one real bill and a check idea.

If I had to do this for my (somewhat impulsive) son, I'd probably give him the fake bill and dole the real cash out over five years. However, $100k all at once might enable a house purchase, or even close in or retirement.

 

[Rustic23]

I vote for the $30,000 annual gift. Look into the mechanics of it. Might not be as simple as one check. The kids will be just as happy, you don’t have to report gifts $15,000 per person I.e. 15 from you 15 from DW. If they are married, double the amount by gifting to the wife, and or kids

https://www.taxry.com/blog/irs-know-you-give-gift

 

[isisdave]

And I'm not sure what "annuity ... will mature" actually means. You want to make sure you understand the tax nature of distributing those proceeds. Annuity income is generally taxable, but maybe this one is a life insurance settlement and therefore not taxable.

 

[RetiredHappy]

The gift limit has been raised to $16K per person in 2022, making it $32K for a couple.

 

[FLJim]

Gift

In about a year or so, an annuity that DW has will mature. She wants to gift the proceeds of about $100K to each son. This annuity is as a result of their father's life insurance policies that she has never needed. The sons have no idea that this annuity exists. It will be a total surprise to them and they are great people, by the way.

I suggested she give it to them in a gift box. We researched how big a bundle of $100 bills would be, and it comes to about 5 inches, which would fit nicely into a gift box. She is really excited about this gift and would like your opinion.

Definitely not cash. I also have a theory that a windfall gift that is (possibly) way more than their current net worth will be a curse and not a blessing. If someone who has accumulated, say, $100,000 gets a windfall of $100k it is likely able to be handled emotionally and financially. Someone who has a NW of $1,000 suddenly getting $100k - very likely to blow it, and more. Just research the history of the poor folks who won a big lottery prize. All depends on the sons and where they are at 'in life'.

 

[indiajust]

Civil asset forfeiture is real. It is billions every year. Church collections, vehicle transactions, gambling winnings, property sales, retirement account closures.... Anything above 4-5k will get seized. the money will be charged with a crime, not you. And it is guilty until proven innocent. It will cost thousands of dollars and take years to get it returned. If the feds get involved via revenue sharing, only a publicity campaign will have an impact. You are far less likely to get your children arrest
ed with crypto. Check out IJ.com, the Institute for Justice.

 

[Letj]

Civil asset forfeiture is real. It is billions every year. Church collections, vehicle transactions, gambling winnings, property sales, retirement account closures.... Anything above 4-5k will get seized. the money will be charged with a crime, not you. And it is guilty until proven innocent. It will cost thousands of dollars and take years to get it returned. If the feds get involved via revenue sharing, only a publicity campaign will have an impact. You are far less likely to get your children arrest

ed with crypto. Check out IJ.com, the Institute for Justice.

I don’t understand this comment. Why is there a risk of seizure if your have a legitimate transaction?

 

[Surewhitey]

The gift limit has been raised to $16K per person in 2022, making it $32K for a couple.

+1 on this idea. Each of you can gift $16k annually to each child. $32k +32k each is nothing to sneeze at. Maybe have some of it to fund a mini-vaca & present it all together...