A couple is giving $30,000 annually to their sister for at least five years. They question if this exceeds the IRS gift-tax limit. Contributions from separate and joint accounts have different tax implications. The IRS does not care about the method of payment, as long as it is accounted for accurately.

The couple is well within federal gift-tax limits, avoiding gift tax liability. The annual gift-tax exclusion amount is currently $19,000 per person. An irrevocable trust can protect assets from misuse. Other ways to give money tax-free include payments directly to medical or educational providers.

Paper checks are slower and vulnerable to scams. Checks can take several weeks to process, increasing the risk of fraud. A common scam involves cashing a check for a third party, leaving the customer liable for wired funds. Despite differing views on paper checks, the couple agrees on helping their sister.

In a world of financial malfeasance, a couple’s act of generosity stands out as a reminder of the inherent goodness of people. The couple’s letter showcases a positive light in the midst of challenging financial situations. They prioritize family support and financial assistance over material concerns.

Read more at Yahoo Finance: My husband and I are giving my sister $30K each year. Will we owe the IRS gift tax?