Family member gifting from abroad
My parents are still alive and live in Ireland. We are currently looking for a house. My parents are gifting us $50,000 to help us towards a down payment for the house. My father wants to wire the money to us electronically from Ireland to us here in Chicago.
Will there be any issue with the banks asking questions or with the IRS?
And what who pays taxes on the money or is it tax free because it is a gift?
I just needs some clarity before he makes the transfer.
Terry Says
You’ll need a major bank to accept this wire transfer. YOu’ll need to open an account with them. The amount you get in dollars will depend on the exchange rate of dollars for Euros on the day the transfer is made (that’s assuming they are currently holding the money in Euros.)
Are your parents American citizens, just living in Ireland? If so, they are subject to American tax laws. They can make that gift with no tax consequences to themselves or you. And there is no reporting required. If they die, and if their estate is over $11 million there could be a gift tax as part of their estate tax. But if I’m guessing correctly that will not apply.
Just say thank you — and be sure to invite them for the holidays!!
