Receiving 100k as a gift

[Michael Weis]

Good Morning, I have someone who will be helping me get my journey started by gifting me 100k.  I know they are responsible for tax forms on their end.  What's the easiest way to receive the money?  Is it as simple as having them put the money in a joint account and then i use it from there or is there a very particular way this needs to happen?

Thanks 

Mike

[Steve Vaughan]

Properly done with a tax attorney, the $100k can be reduced from the giftors' lifetime exemption.  The penalty for doing this wrong is 55% so I am glad you are at least thinking about it @Michael Weis

Also, gifts of $15k/yr can apply to you and again to your spouse, if married.  A married couple can receive $30k Dec 31, then again Jan 1.  Adds up quickly. 

I would rather get it done properly with the estate tax exemption than do some hokey 0% loan thing that causes problems and could penalize the giver at a rate of 55%.