Wills, Trusts & Estates Prof Blog

Editor: Gerry W. Beyer
Texas Tech Univ. School of Law

Friday, December 28, 2012

End of Year Gifting by Check

Gift TaxThe problem with using a check to gift money to take advantage of either the annual exclusion or lifetime gift tax exemption is that the donor can revoke the gift before the check clears the bank. The problem with this is that the gift is not considered complete until the revocability period ends, which can mean that a gift that was intended for 2012 might become a gift in 2013. The safest way to ensure that the gift is made in 2012 is to ensure that the check is delivered, the recipient deposits the check, and it clears by the end of this year. If a problem occurs, Revenue Ruling 96-56 provides a safe harbor.

See Charles Rubin, Last Minute Gifting By Check, JDSupra Law News, Rubin on Tax, Dec. 21, 2012.

Special thanks to Jim Hillhouse (Professional Legal Marketing (PLM, Inc.)) and  Brian Cohan (Attorney at Law, Law Offices of Brian J. Cohan, P.C.) for bringing this article to my attention.


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This is a great post.  Thanks for Sharing

Posted by: Bankruptcy Attorney Norman ok | Dec 28, 2012 9:35:01 PM

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