Best way to gift kids with money?

[mommdc]

https://www.irs.gov/taxtopics/tc553.html

Child’s Tax Return

Figure the child’s tax on Form 8615 (PDF), Tax for Certain Children Who Have Unearned Income, and attach it to the child’s tax return when:

The child’s unearned income was more than $2,100

The child meets one of the following age requirements:

The child was under age 18 at the end of the tax yearThe child was age 18 but less than 19 at the end of the tax year and the child’s earned income didn’t exceed one-half of the child’s own support for the year (excluding scholarships if the child was a full-time student), or

The child was a full-time student who was at least 19 and under age 24 at the end of the tax year and the child’s earned income didn’t exceed one-half of the child’s own support for the year (excluding scholarships)

At least one of the child’s parents was alive at the end of the tax year

The child is required to file a tax return for the tax year, and

The child doesn’t file a joint return for the tax year

[Sportsman88]

This is a question for a CPA with the amounts you are considering

[CaliCash]

Why would you give a teenager a quarter of a million dollars? I’m not too keen with financial jargon but what I do know is, that money would be better spent after she graduates. Why give her access to $250,000 now when outside of books, she would be paying for frivolous things? I know speaking for myself, I would much rather have $250,000 when I’m 23 looking to get a nice apartment or car than have it now when I would be spending it on unnecessary things. Or even better, give her $15,000 a year for the next 15 years.