Q: I am investing my money (trying to grow it beyond being in a regular savings account) and my mom has around $10K that she would also like to add to my money but we are afraid it may raise red flags with the IRS. The transition would be from one bank to a different bank. Also, I am in Pittsburgh, she is in South Carolina. (Regent Square, Pittsburgh, PA)

A: I think you should ask the bank you plan on depositing these funds in to. My recollection is that businesses must fill out an IRS form for every check or cash in the amount of $10,000.00 or over. I believe banks only report deposits from individuals to the IRS if it is cash or of a suspicious nature. These types of deposits occur frequently and the bank doesn’t like to turn in their own good customers. Another consideration is Federal Gift Tax. This amount is under the Federal Gift Tax limit and therefore there would be no concerns regarding your mother’s income taxes. Also, you may want to consider the potential consequences of this transfer if mom needs to apply for Medicaid in the next five years. If she does, this transfer may be render her ineligible for the value of the transfer to you.