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I'm helping my fiance pay off her student loans. We both have Wells Fargo accounts. What is the quickest and cheapest way to transfer a large amount, say $20K or more, to her account? I'd prefer to stay away from fees and any tax issues. I know Wells Fargo online allows you to transfer up to $1,500 a day and limits you to $20K a month, but is there a faster way to transfer a large amount safely? I'd prefer not to have these loans accruing more interest.

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    What's wrong with checks? – littleadv May 23 '13 at 18:19
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    BTW: $20K will require paying gift tax – littleadv May 23 '13 at 18:19
  • If I were to transfer $1,500 a day online till I hit the $20K monthly limit, would I still be required to pay gift tax? – wwwuser May 23 '13 at 18:59
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    the threshold for gift tax is $13500 a year. You can use the lifetime exclusion, as mentioned, but it comes on the account of the estate tax/later gifts. – littleadv May 23 '13 at 19:18
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    If she's your wife and not fiance, then there's no gift tax issues on transfers between you two, by the way. – littleadv May 23 '13 at 19:19
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The key is to avoid the gift tax, or gift tax paperwork.

If you are getting married THIS year and you want to get this done quickly:

  • Write a check to the loan servicing company for $14,000.
  • Get married
  • Write a check for the rest of the $20,000 to the loan servicing company.

If you are getting married NEXT year and you want to get this done quickly:

  • Write a check to the loan servicing company for $14,000.
  • Wait until the first business day of next year.
  • Write a check for the rest of the $20,000 to the loan servicing company.

Note: $14,000 is the current threshold for gift tax rules for an exchange from one person to another. There is no limit from one spouse to another, if both are US citizens.

  • If I were to send a check or transfer money for all $20,000 how much gift tax would I need to pay next year? Or better, how do I figure how much gift tax I would need to pay in my taxes? – wwwuser May 23 '13 at 21:15

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