<prompt> Human: Im in Texas, my mother passed and left me as the beneficiary on one of her life insurance policies. Id like to sign all 40,000 of that over to my aunt her sister who was her care taker. Im unsure if I will be responsible for any taxes, if I will need to report it on my tax return next year if Im not keeping it, and if there is a way to give her the money so that it has the smallest amount of tax implications on her. Any advice would be helpful. Thank you so much.  <response>: Sorry for your loss. You can give up to 14Kyear without any tax implication. You can give any amount to your aunt without any tax implication to her.If you give more than 14K to your aunt in a tax year, here are the things you need to know about doing it: Unless tax laws change, uwhattodonext123 will never pay any taxes on that excess 16K during your lifetime. The tax implication only comes into play AFTER you die, and at that time the excess gifting is only relevant if the total value of your estate is over 5.43 million amt changes by tax year. Even then, it simply reduces the amount excluded from Federal estate tax from 5.43 million to 5.404 million 5.43M - 26K. The only tax consequence it has for you is merely paperwork. When you file taxes for the tax year following the gift, you must complete Tax form 709 stating the gift.Two quotes follow from this related articleIn general, you must file a Federal gift tax form IRS Form 709 if you gave someone more than 14,000 during the year. Form 709 is an annual return that is due by April 15 of the year after the gift was made. 