LETTERS TO WRITE TO RECIPIENTS WHEN YOU ARE GIFTING MONEY

We previously wrote on the 2023 annual gift tax exclusion ($17,000 per individual and $34,000 per married couple to as many people as you want) and lifetime gift tax exclusion ($12.92 million per individual and double that for a married couple). https://www.adamnicolailaw.com/post/you-can-gift-up-to-17-000-in-2023

When you are gifting money to friends or loved ones (say, for example, to help them with a down payment on a home), you should also include a letter documenting your gift and containing specific language.

The letter should contain:

1. The name, address, and telephone number of the donor (gift giver)

2. The relationship of the donor to the donee (gift recipient)

3. The exact dollar amount of the gift

4. The date the gift was given

5. A complete and comprehensive statement from the donor explicitly stating that no repayment is required or expected from the donee

6. The donor's signature

7. The donee's signature

8. The address of the property being purchased (if applicable)

If you need assistance making a gift as part of your estate planning or you are simply looking to help a friend or family member with a gift, please contact us at 310.714.7034 or info@nicolailawfirm.com. We can help you draft your gift letters.

Happy gifting!

Information contained in this Memo is intended for informational and educational purposes only and does not constitute legal advice or opinion, nor is it a substitute for the professional judgment of an attorney. It is likely considered advertising.