what is a monetary gift

A monetary gift is a transfer of money or a financial instrument that has liquid value from one party to another, without receiving or expecting to receive anything in return. Giving monetary gifts can be a way to show that you care about the recipients future, especially when gifting money to children, young couples, or grandchildren. Monetary gifts can provide added financial security and may help open the door for new opportunities, such as investing for the first time, paying for college, buying a first home, or starting a business. There are different ways to give gifts of monetary value beyond giving cash bills, such as gift cards, CDs or savings account transfers, stocks, 529 contributions, or charitable contributions. If you want to follow monetary gift etiquette, make sure to go the extra mile by adding a handwritten greeting card or video greeting to turn a routine transfer of funds into a fun, personal gift. Giving financial gifts may have tax implications on the gift giver if the total amount of gifts given in a given calendar year to the same gift receiver is more than the annual IRS gift tax exclusion rate, which currently sits at $15,000 per person.