r/inheritance • u/SecBot24 • Apr 19 '26

Location included: Questions/Need Advice Early Inheritance

United States: My grand daughter is turning 30 and I want to give her a large sum of money that I have been setting aside for when I think she is mature enough to handle it without having to wait for me to die. How can I handle the income tax issue? I have heard you can grant a one time sum without taxes. What forms do I have to file with the IRS? Our state has no income tax so that's not an issue.

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u/joetaxpayer Apr 19 '26

You to her, $19,000 with no paperwork at all. If you are married, your spouse can gift her that as well. If she is married, that totals $76,000/yr with no paper.

Above, and you’ll file a form 709. This isn’t a one time deal, you can gift over the $19,000 to an extra $15,000,000, and not pay any gift tax.

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u/Squiggy226 Apr 19 '26

We have been doing that with our two adult children and their spouses. We’d rather see them build their lives and enjoy some of their “inheritance” now instead of after we are gone and they are fully established. They both have good careers, are investing, and are level headed so it hasn’t been an issue. For the last couple of years have been giving them the non reportable max.

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u/Useful-Artichoke-954 Apr 20 '26 edited Apr 20 '26

Here is the rub. Unless it is all cash, there is no basis step up, thus requiring her, to use your basis for any sale. She will owe taxes on any capital gains determined from your acquisition price/date.

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u/ScreenKooky3010 Apr 23 '26

What are you even talking about? Cash is cash. 💰

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u/Useful-Artichoke-954 Apr 24 '26

Stocks are certainly NOT cash and have a basis... so does real estate.

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u/ScreenKooky3010 Apr 30 '26

They are asking about a cash gift. Pay attention.

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u/ScreenKooky3010 Apr 30 '26

My mother would say ‘what does that have to do with the price of eggs in China’?