Here It Is - The Million Dollar Question

Q. I may be making this question too general, but this is the first time I've ever had the possiblilty of something like this happening. If someone were to give me a large amount of money, $1,000,000.00 for example, as just a flat out gift, what kind of taxes would I have to pay and are there ways around paying these taxes?


A. First, congratulations! I hope it comes about for you.

Assuming the money is coming from an individual, the answer is really quite simple. There are not any taxes that the person receiving the gift has to pay on the transfer. Gift and inheritance taxes are all paid by the giver.

The only taxes you will need to 'worry' about are any future taxes on the income/earnings off of the $1,000,000.

If the money is being won from a game show or lottery, then there will be taxes due on it. If that is what you expect let me know and I will address those taxes in detail.


Obviously, receiving a large amount of money like that will change your life. There are several issues that you will want to be aware of. If it comes about, feel free to let me know and I can provide additional information. For instance, you will immediately have a target on your back and will be hunted by every broker, insurance agent and financial advisor out there. Moreover, you'll be contacted by almost anyone looking for a handout. You'll even get calls from car salesman, etc!

Let me know if you have any more questions...

Your posted comments on this and other questions are welcome.
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