Best way to give my Five Kids 100.000 IQD each??

[securityguy]

I have Five children and would like to make sure they each get a share of the spoils. How would be the best and simplest way to be assured they will get a portion. I wanted to give each one of them 100,000 IQD and let them pay their own taxes. I thought we would all cash in togather to better get the Banks best spread. I am VIP?

[olivesman]

I would say, hand each of them 4 25k notes. But they should each pony up $50 to become VIPs as the use of your VIP certificate for them to get the VIP rate is not allowed. Or you could buy their membership for them.

[paperboy]

Ditto to Olivesman's answer.

[jasondb17]

Trust funds?

[Seabee]

Not knowing what it will RV at, I will give my kids a proportionate amount.

However, if it RV's at 1 to 1 then I will give em half a mill each and I will worry about any taxes.

No doubt my kids have been good to me and I want to see them succeed as I have no idea what this world will be like when my time comes.

Go...........RV!!!!!!!!!!!!!!!!!!!!!!!!!

[tyron]

I would say, hand each of them 4 25k notes. But they should each pony up $50 to become VIPs as the use of your VIP certificate for them to get the VIP rate is not allowed. Or you could buy their membership for them.

Maybe not such a good idea. £100,000 is not a large enough sum to benefit from the spread difference Adam will be able to negotiate. In this event one would be better off spending the five $50.00s on buying more IQDs.

[Elixirbaby]

Check out gifting options. You can sign them over pre RV now with no worries on tax since 4 25k notes are only worth less then hundred dollars. Post RV I think you can gift $13,000 to each of you kids without taxes. Sign some notes to your wife and she can gift$13,000 also to each of the kids. I think there is also a one time gifting amount of up to 1 mall but not sure. If this RV pans out like we all hope, please seek a tax attorney so you do it right and not have tax man comath nocking at your door. It will be worth the couple of thousand dollars. Hope this helps.

Go RV

[DinarBot]

Do Not make any moves until speaking to a Tax Attorney or CPA. One hour free consultation in Most States. When ready. You may be doing your Human children more harm than good before confirning tax credits etc.

Check out gifting options. You can sign them over pre RV now with no worries on tax since 4 25k notes are only worth less then hundred dollars. Post RV I think you can gift $13,000 to each of you kids without taxes. Sign some notes to your wife and she can gift$13,000 also to each of the kids. I think there is also a one time gifting amount of up to 1 mall but not sure. If this RV pans out like we all hope, please seek a tax attorney so you do it right and not have tax man comath nocking at your door. It will be worth the couple of thousand dollars. Hope this helps.

Go RV

Yes. What He Said.

Edited February 24, 2012 by DinarBot

[okane]

If you are married, you and your spouse could give 13K each (total of 26K) tax free to each kid for 4 years. And if they are married or have kids, 26K to family member and knock it out in no time. All would be tax free to them and may be a deduction to you. Not sure about the deduction part. You could also put it in a family trust with earnings going toward the kids each year. If it gained 10% then each could get 10K for life and have it passed to the grandchildren.

[BrokeNoMore]

However else you go about this, make sure you create a gifting letter dated pre RV and have it notarized. That will pass the tax to them, based on after RV value.

Alternatively, if you are utilizing offshore options, you might just leave it all in the offshore, and give it to them post-RV as "employees" of your corporation, and the tax will still be theirs.

Then you only need one VIP certificate, and the offshore setup (which admittedly isn't cheap on this end, but well worth the investment for on the other side) will provide all the protection and tax savings you need.

[securityguy]

Thank you all for your reply. I think I will consider a little from each post and First consult a good Tax attorney. I like the option of gifting each 25K. Four of the five are married with at least two children. That would take care of the 100K all at once if I can gift the grandchildren also. My fifth son is 36 and a minister and says he just does not have time to serve Two Masters. (his little joke) 25K for four years would probibly be better for him anyway. He only works part time at his secular job.

Again, thank you all for your input, but one more question. Would I need Gifting Letters to do the 25K thing?

[olivesman]

Maybe not such a good idea. £100,000 is not a large enough sum to benefit from the spread difference Adam will be able to negotiate. In this event one would be better off spending the five $50.00s on buying more IQDs.

Perhaps you are correct. If you DO spend the $250 on more dinar you should be able to get almost another 50k for each of your five ($280 for 250k at GIDASSOCIATES). But the fact still remains that they are not allowed to use your VIP certificate to get the rate that you will. And if you cash it in for them (to take advantage of the better rate) YOU WILL be liable for the taxes. I would just hate to see our benefits abused and I would also hate to see you lose the benefits due to misuse.

However else you go about this, make sure you create a gifting letter dated pre RV and have it notarized. That will pass the tax to them, based on after RV value.

Alternatively, if you are utilizing offshore options, you might just leave it all in the offshore, and give it to them post-RV as "employees" of your corporation, and the tax will still be theirs.

Then you only need one VIP certificate, and the offshore setup (which admittedly isn't cheap on this end, but well worth the investment for on the other side) will provide all the protection and tax savings you need.

The gifting letter is only a precaution to let the IRS know that your corporation owns the dinar you once owned if you are in OSI. When was the last time you gave someone some money in a gift and had a notarized letter stating that you gave Joey $20 for his birthday. sorry if smarta$$ed.

[securityguy]

I have ran my own on line business for the last eight years and have Never had to stoop to being unfair or dishonest. I don't intend to start now or any time soon. My only concern in not having the Gifting Letters is the kids will not be able to show the source of their sudden wealth. If they deposit the money in the bank that will allert the IRS.

I am thinking to be safe, maybe I just need to Bite the Bullet, pay the taxes and give them what the law allows tax free.

[BrokeNoMore]

The gifting letter is only a precaution to let the IRS know that your corporation owns the dinar you once owned if you are in OSI. When was the last time you gave someone some money in a gift and had a notarized letter stating that you gave Joey $20 for his birthday. sorry if smarta$$ed.

"only a precaution?"

It's a pretty important precaution, if you ask me. When the IRS comes knocking, it ain't gonna be for no 20 bucks.

[smee2]

I don't think you are speaking of an amount large enough to make much of a difference vis a vis the spread amount. And part of giving is letting them do with it as they want. Let them figure out how to cash out. Give them the benefit of your advice, but then leave it to them. If they don't know it is coming and it is a suprise, they may have fun of going through the things one has to go through to turn the pretty coloured money into real money.

The issue of gifting ... I am not aware of US rules but would suggest, as someone else did, a gift letter, notarized. That will stand up in court to show your intentions.

Then, put the amount you wish to give each child, into an envelope with the gifting letter and the child's name on the front. Take all of them and leave them in a safe deposit box, or with your family lawyer. If anything happens to you like a bus plowing into your suv at the intersection, those gifts will be there, intact, ready to dispense to the kids with any other bequests that you might have in your will ... you do have a will, don't you. If not ... do it!

That is about the easiest way. Counting pennies on exchange or spread or anything else is just that ... counting pennies. If you give a child 100,000 dinar they are going to have so much fun just turning it into money and paying their own taxes and stuff is not going to be a great burden. They will still have lots to "dream" with.

My situation is a little different. I don't have chiildren. So I gave my sister-in-law a bunch of dinar and directed her to split it up after RV so that each of her kids and grandkids *who are my deceased husbands neices and nephews on two lelvels, and his parents, will get an amount by percentage of the original. I did this almost two years ago and she still holds them. She is a certified chartered accountant and has all the necessary skills and contacts to take best advantage of all this.

smee2

[BrokeNoMore]

I have ran my own on line business for the last eight years and have Never had to stoop to being unfair or dishonest. I don't intend to start now or any time soon. My only concern in not having the Gifting Letters is the kids will not be able to show the source of their sudden wealth. If they deposit the money in the bank that will allert the IRS.

I am thinking to be safe, maybe I just need to Bite the Bullet, pay the taxes and give them what the law allows tax free.

This is complicated, but I'm going to try to make it simple.

If you do not do the offshore option, you will be paying tax on your cash-in on anything you cash in in your name on your VIP.

If try to "gift them" ANY AMOUNT post RV, you will still pay tax on it. The gifted amount up to the "limit" isn't deductible by you. Gifts up to the "limit" simply means that they will not also pay tax on it again. This is an incredibly important distinction.

If you do the notarized gift letters now, the gifting limit and taxation considerations are based on the IQD current value. So you could give them each approximately 11 million IQD (rough estimate) and still be under the gift cap, based on current USD value, so that they will not pay tax on the current value. They will still pay tax on the wealth at the revalued value.

If I were you, I would do the notarized gift letters. They are cheap or free, and may be priceless. This gives you options. We don't really know how much the VIP alone is actually going to benefit (the dollar value savings using VIP is nebulous[we don't know how much spread reduction will be, etc]) and it may work out just fine to not use the letters, and do it all in your name, and bite the bullet.

But at least leave yourself with options. The more you can afford, the better.

[securityguy]

Good advice from all. Thank you.

[olivesman]

"only a precaution?"

It's a pretty important precaution, if you ask me. When the IRS comes knocking, it ain't gonna be for no 20 bucks.

only (adjective) defined: alone in a class or category : sole <the only one left> <the only known species> <the only reason one would need something>

Apparently you thought I intended the word "only" to mean of diminished importance when in fact I was using to word to specify that A GIFTING LETTER IS NOT NECESSARY FOR ANY OTHER REASON THAN to prove to the IRS that the dinar were not OWNED by you but by YOUR CORPORATION should they come calling. It is NOT necessary when giving dinar as a gift to another person because obviously the proceeds will not show up on YOUR balance sheet (bank statement, etc.) but theirs.

I have ran my own on line business for the last eight years and have Never had to stoop to being unfair or dishonest. I don't intend to start now or any time soon. My only concern in not having the Gifting Letters is the kids will not be able to show the source of their sudden wealth. If they deposit the money in the bank that will allert the IRS.

I am thinking to be safe, maybe I just need to Bite the Bullet, pay the taxes and give them what the law allows tax free.

Um....WOW. I'm thinking that EVERYBODY is really OVER-COMPLICATING THE ISSUE. Your children will fill out a FINCEN when they cash in. THIS WILL SHOW THE IRS WHERE IT CAME FROM.

Okay? OKAY!