As a Mortgage Planner I would recommend that you do not move the money at all! The lender who will provide the financing will want to source where the money comes from, it can be a real pain to try to show a paper trail sometimes especially if the money isn't "seasoned" in the account for at least 60 days. The best thing to do is to speak with a Mortgage Broker immediately and figure out what the best plan for the particular program you are looking to do.

The 2009 Gift Tax Exclusion is $13,000 per recipient, per year.

http://www.irs.gov/businesses/small/article/0,,id=164878,00.html

IMPORTANT:

This is a fairly typical situation; but you do not want any appearance of impropriety (Loan Fraud, Tax Evasion, or other serious matters).

It is imperative that you talk with (and get a written reply from) a Loan Officer at the Institution that will be loaning you the [mortgage] money for your house, preferably BEFORE your mother-in-law makes the transfer (gives you the money).


Also consider meeting with a Certified Public Accountant or Tax Attorney, preferably BEFORE your mother-in-law makes the transfer (gives you the money).

Best wishes to you.

It depends on how much your mother-in-law is planning to gift to you. I think she can give each of you $12,000 per year gift tax free, but I would consult a tax or estate planning attorney to confirm this. So, in this scenario, she can give you a total of $24,000 tax free. If it's more than that, then there probably are some tax consequences, but again, consult a tax attorney on it. I would also consult with a trusted mortgage person to see how different loan programs look at the gift money. Several of them allow gift money to be used, based on a percentage of the value of the house you are purchasing.

First of all talk with your loan officer. If you don't have one I would be happy to recommend one that is honest, and competent. If the loan is an FHA type gift letters are ok for the money. But structuring 2 checks, one after another could get you noticed by the IRS. Talk with a financial advisor, again, if you don't have one, I could recommend one. There's a certain amount our kind government allows you to get as a gift, PER Year, not per check. I am not sure what that is right now.

Hope that helps. If you just deposit it like you're planning, questions will be raised anyway. Let me know if you would like some recommendations. Thanks, Mark Griffin/Counselor Realty, Inc. Fridley, MN 55432 612-990-5600.