Yes, you can give your son a million dollars. There are no legal restrictions on gifting money to family members in the United States. However, there are some important factors to consider:
Tax Implications
- Gift Tax: The federal government has a gift tax, but it only applies to gifts exceeding the annual exclusion amount. In 2023, this amount is $17,000 per person. If you give your son more than $17,000 in a single year, you will need to file a gift tax return (Form 709).
- Estate Tax: The lifetime exemption for estate tax is currently $12.92 million per person. This means you can give away up to $12.92 million over your lifetime without incurring estate tax.
Financial Consequences
- Financial Responsibility: Consider your son's financial maturity. A large sum of money could be overwhelming or misused if he is not prepared to handle it responsibly.
- Investment Strategy: If you are gifting a large sum, consider providing guidance on how to invest the money wisely.
Other Considerations
- Family Dynamics: A significant gift could potentially affect family relationships. Discuss your intentions openly with your family.
- Legal Advice: Consult with a tax advisor and estate planning attorney to understand the full implications of your gift.
