What would you think or feel if your elderly uncle gave you $15,000?
The money giving uncle only visited a few times in your life and never recognized birthdays or holidays. Suddenly out of the blue the old uncle gives you $15,000. He wants nothing whatsoever in return. He simply says that he has more money than he will ever spend and doesn’t want to wait until he dies for you to get the inheritance.
He doesn’t say this but he would give more money but that would trigger a taxable event for both the the giver and the recipient. As far as I know you are allowed to gift up to but not over $15K per year without paying a gift tax.
How you you feel about this situation? Weird? Grateful? Embarrassed? All of the above?
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28 Answers
Grateful and happy. Not embarrassed at all.
He died. Nothing coming from him.
Seriously -
1) accept it
2) thank him
3) pay the taxes if required
4) enjoy it
Grateful and happy. No idea why anyone would feel weird or embarrassed about it.
I would feel a bit weird if we weren’t close, but of course grateful.
Grateful and pleased that he even thought of me.
”....... ONLY visited a FEW times in your life and NEVER recognized BIRTHDAYS or holidays. Suddenly out of the blue the old uncle gives you $15,000.”
Possibly he never gave gifts because he saved it all to give you one lump sum?
We never got gifts nor recognized for Birthdays or Christmas and so on due to poor conditions in childhood ( bad economic times).
Presently a lot of children are GIVEN gifts for anything and its ingrained in there psyche THAT they are ENTITLED to receiving gifts and to be acknowledged.
GIFT means its a PRIVILEDGE to be bestowed with something that took away from the
giver ( monetary, time ) it was a sacrifice in some way to do without in order to make the receiver feel better that they were remembered.
Many in this world live without basic necessities and yet in the present are those who scoff at NOT getting a gift?
Instead of a gift give to a charity in the persons name where it would do a lot more good and teach the person gratitude in living in a secure, safe place.
I’d say “thanks” and then I’d think Vacation!
Grateful! Say “Thank you!” and ask what he needs done around the house or apartment. Invite him to dinner.
I’m figure it was time for him to take out money from his retirement account to meet the IRS rules, and he wisely kept the gifts below the 15k threshold so the gift is tax free to you – and, I’m guessing, your cousins.
Here is the IRS Required Minimum Distribution calculator that he is likely using.
Using the calculator, let’s say he is 80 at the end of this year and his balance is $1M. That means he has to withdraw $53,476 from his accounts or pay a stiff penalty. He is already on Soc Security, has a pension and dividends from investments. He does not need it. He knows you can use it wisely and won’t abuse it.
Keep this in mind when it is your turn to give money away. Pay it forward.
I guess the same way I’d feel if a young uncle gave me a boat load of money.
Grateful if not a bit confused. Take his lead for future contact. It would be natural to want to suddenly invite him places, help him etc. Those are all very great ways to pay him back. However, it may not be what he wants. So like I said, I would take his lead on all that.
Thankful. Appreciative. Lucky!
Thankful, like my friend.
I worked with a guy that had a FIL that was a CEO of a small aerospace company in Florida. Only living relative was my friend’s wife. Each Christmas they would receive four checks with the max for non-taxable amount. 1 from FIL for him, 1 from MIL for him, 1 from her father for my friend’s wife and 1 from her mother.
Surprised, grateful and happy.
Surprised, delighted, and thankful.
@LuckyGuy …he wisely kept the gifts below the 15k threshold so the gift is tax free to you Under U.S. tax law, gifts are tax-free to recipients [I.R.C. Sec. 102(a)]. They’re never included in the donee’s gross taxable income. Gift tax is a whole other matter and, in the rare instances when it applies, it’s imposed on the donor, not the donee.
Grateful! He has more money than he knows what to do with so he’s giving it away. That’s not uncommon. Maybe he planned to name you in his will maybe, and better now than later.
I would say thank you. People who get old with no children often start distributing the annual exclusion amount. The amount for 2021 is $15,000 per person per year with no tax liability. This distribution can be made every year one time to any individual.
Concerned.
Is he depressed? Is he giving away all of his worldly goods?
@raum He was careful about using tax loopholes.
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