Hi, so I am married in Illinois. My parents are also still married. My understanding is we can receive $14,000 x 4 from them. To make it kosher, would it require them to write four separate checks, or could they just write one check for $56K with the implication that father is giving me 14, wife 14, and then mother is giving me 14 and wife 14?
Thanks
from, since Illinois is not a community property state.
If the account the check is written on was funded equally by each parent, so each contributed 50% to what is in the account, one check would be fine.
If that's not the case there are two options. One is that each parent can write one check from his or her own funds. Or they can write one check from them both, and file a gift tax return to claim gift splitting (treating the money as if it came equally from two married people when it actually was from them unequally.
And the gift tax return would use up some of the unified credit, or whatever it is called these days, right?
No, if the gift is not over the joint annual limit and gift splitting is elected, it should not affect either the annual exemption or the lifetime exemption.
And the gift tax return would use up some of the unified credit, or whatever it is called these days, right? =========== I don't see any unified credit being used here. $14k x 4 (married to married) is exempt.
Also, the 50% rule above could equally be satisfied if the donors are resident in a community-property state (so demonstration of funding the account isn't needed). The recipient is stated as in Illinois, but where the donors live is unstated.
There is no splitting of the check by the recipients under community-property. Both spouses must be named on the check.
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