"Question Regarding Gifting Letters" by Signify - 4.16.17

Entry Submitted by Signify at 5:57 PM EDT on April 16, 2017

Questions from Signify about GIFTING LETTERS to an LLC or trust

Dear DC community - maybe OWK will want to respond to this. And maybe my questions will be food for thought for others, if there are issues they haven't thought about.

First: Does anyone have a template they've already vetted, for gifting currency they purchased personally to an LLC or trust prior to exchange? If so, would you kindly share it, or share the link you used?

Related questions:

- Do our gifting letters need to be signed & notarized "at home" in advance?

- Might our CE gifting documents have to differ from state to state? (Corporate entities are ruled by the laws of the state in which they're founded.)

My quick online research shows a simple generic document on NOLO (for a real estate transaction--easily adaptable to present purposes if it'd be accepted), vs. a 4-page highly complex one on lawdepot.com, where it's called a "gift deed." That one is classified as an irrevocable gift -- which will lead me to another question in a sec. Interestingly, lawdepot, which I've never explored before, popped up an editable document for MY home state. Hmmm. And I wonder if an irrevocable "gift deed" is my state's requirement, or something the site uses for all.

- About gifting Iraqi currency along with VND/VNN and Zim: we've read that there may be special taxable conditions on IQD/IQN currency, unlike the other countries' -- I believe this has to do with the US's wartime relationship with Iraq. Now, it'll be great if the IRS goes away, and soon, as OWK and others project. But I plan to set things up as compliant and asset-protective within the existing system, and will be delighted to see a formal announcement down the pike that there's no more IRS or income tax.

So, I plan to do 3 different gifting letters, one for each of my 3 currencies. We've been cautioned (in earlier years) against mixing currencies in one bank account. I'm also wondering about mixing IQD/IQN with the others in my LLC. I'm having a "virgin" LLC created that has never done any taxable business activity and is coded properly for asset-holding-only purposes; I don't want to compromise the rest of the funds in it with a taxable transaction. My plan is to bring all letters to the appointment, and if I learn there's a potential taxation issue with IQD/IQN, I may keep it, or have a letter that gifts it to a different LLC that has already done taxable business.

- Finally, it seems like a good idea to create an acknowledgement letter of thanks from the corporate entity for each gifting letter. Non-profits have to do this, but it might be prudent for business entities too, in this case.

Many thanks for your insights!

Signify