ABA Family Legal Guide

Family Law

Money Matters During Marriage

Debts and Taxes

May one spouse make a tax-free gift to the other spouse?

A person may give his or her spouse any amount of money without paying federal gift taxes if the spouse is a U.S. resident. However, it must be an outright gift or set up as a proper trust. Most, but not all, state laws have done away with taxes on gifts between spouses. But the same is not true with respect to gifts to other family members. Gifts to children or other relatives may be taxable if they exceed a certain amount per year.