|Posted: April 16, 2010, 10:24 pm - IP Logged|
You could take full advantage of the gift tax. That means you can give away $13,000 a year to as many different people as you want tax free. If you are married, then you and your spouse can give $26,000 to each person. If the person/family your are giving the money to has kids then you can give $13,000/26,000 to their child/children as well.
The quote below is from TurboTax apparently there is also a one-time $1,000,000 amount that you can give and exceed the $13,000.
"If you give people a lot of money or property, you might have to pay a federal gift tax. But most gifts are not subject to the gift tax. For instance, you can give up to the annual exclusion amount ($13,000 in 2009 and 2010) to any number of people every year, without facing any gift taxes. Recipients never owe income tax on the gifts.
And you can give up to $1 million in gifts that exceed the annual limit—total—in your lifetime, before you start owing the gift tax. If you give $15,000 each to ten people in 2009, for example, you'd use up $20,000 of your $1 million lifetime tax-free limit—ten times the $2,000 by which your $13,000 gifts exceeds the $12,000 per-person annual gift-free amount for 2009."
This just shows why it is a really good idea to get a good attorney and accountant when you win the lotto. They can show you all the tricks to minimize your tax liability.