The person who tells you that the gift tax you are afraid of almost certainly does not apply to you.
Certified Public Accountant, PSG Certified Public Accountants
Khinh is a principal at PSG Certified Public Accountants in Roseville. His section of the evening exists because fear of the gift tax stops more families than the gift tax ever touches.
Most people believe that handing a child a meaningful amount of money triggers a tax bill. For the overwhelming majority of families in this room, it does not. Reporting a gift and paying tax on a gift are two different events, and Khinh spends his time on stage separating them.
He also handles the quieter question that comes up once a family gets past the first one, which is where the money should come from. Cash, a retirement account, and appreciated stock all cost a different amount after tax, and the difference is usually larger than the interest rate anybody is arguing about.
One hour, free, in Folsom. Khinh takes questions from the room, and answers anything we do not get to by email within two days.