I seek advice on writing and later using Gift Letters for source of funds (SOF), especially from those with practical experience using such letters in Italy and Europe's more reasonable countries, and elsewhere. This is not the type of Gift Letter used in real estate transactions. Gift is between family members and is from a US citizen to an EU citizen. It is crypto and bullion worth mid 6 digits. The proposed letter will include: family relationship; reason for gift; address of donor; specific asset and quantity; date and market value of gift; general statement of donor's source of wealth. Letter will be notarized and signed by both donor and recipient. All gifts will be reported on donor's gift tax return (US IRS Form 709), which will be available upon request, as will copies of the donor ID.
The following will not be available: Documentation proving donor's specific source of funds or wealth.
Questions: (1) Should letter include the basis of the gift (date and cost of acquisition, without documentation) since that adds credibility? (2) If gifted assets are eventually sold some years in future, would the proposed gift letter likely be accepted by many bank/emi/brokers/etc as SOF? (3) Any other advice? Thank you.
The following will not be available: Documentation proving donor's specific source of funds or wealth.
Questions: (1) Should letter include the basis of the gift (date and cost of acquisition, without documentation) since that adds credibility? (2) If gifted assets are eventually sold some years in future, would the proposed gift letter likely be accepted by many bank/emi/brokers/etc as SOF? (3) Any other advice? Thank you.
