How to Start a Cash Gifting Program
Gifting money to your loved ones is an excellent way to give them the financial resources they will need to buy a first home, start saving for retirement and build an emergency fund. Starting a cash gifting program is also an excellent way to get a jump start on your estate planning while helping those you care about get a good start in life. Giving money to your loved ones is not difficult, but it is important to follow the proper guidelines.
Other People Are Reading
Instructions
-
-
1
Choose the family members, friends or charities you wish to gift money to. You can gift money to whomever you want, whether they are relatives or not.
-
2
Contact a mutual fund company, brokerage firm or bank and set up an account for each of the people to whom you wish to give money.
-
-
3
Start transferring money from your account to the account you set up for each person to whom you wish to gift money. You can transfer the money all at once, or you can transfer it a little at a time. Keep in mind that the current limit for monetary gifts is $12,000 per year, per person.
-
4
Use IRS form 706 if your gift exceeds the amount you can give tax-free in a single year. Check the IRS website for the current tax-free amounts and to download form 706 if you need it.
-
1
References
- Photo Credit Cash image by Greg Carpenter from Fotolia.com
