Gift and Estate Taxes: Why You Might Never Owe a Penny
Widely misunderstood rules require that you file paperwork for large gifts although few ever pay taxes on them.
Note: This article is part of Morningstar's October 2014 5 Keys to Retirement Investing special report.
If you've ever given a sizable financial gift to someone--say, a four- or five-figure check to a child or grandchild--you're probably aware that there can be gift tax implications tied to such a gesture. Yet, how the gift tax works remains widely misunderstood.