Money from grandparents for a house?

[specialforces27]

Hi, I live in Utah and my grandparents, who live in norway, are kindly giving my wife and I $20,000 to put a down payment on a house. They are ready to transfer the money to my bank account, but I told them I'd have to find out what the tax issuses are beforehand. Anyone have any idea what kind of tax issues I should be worried about here, or how they can transfer the money, i.e. in small increments so that it doesn't become taxable or whatever?

Thanks!

 

[ShyCat]

Their gift of $20,000 is not taxable to you. Whether or not there are tax implications for your grandparents would depend on Norwegian law. Your lender will probably insist on receiving a "gift letter" from your grandparents confirming that the $20,000 is indeed a gift and not a loan.

 

[specialforces27]

Thanks!!

Thanks for your reply! So would it be best for them to just transfer the money to me and provide a letter, or perhaps just have them transfer the money to the lender? Thanks!!!

 

[ShyCat]

They should transfer the money to you. Your lender will have to tell you what they require in regards to the gift letter. It may be a form letter that they provide and your grandparents would have to fill out.

 

[specialforces27]

Fantastic. Thanks so much for your help!!