Taxes will be taken out before you ever get a penny. LOL. Setting up trusts is the best way to give large money gifts unless you call it a 'loan'. Both parties sign the loan papers and then file it paid in full. My DD graduated college with a perfect credit score and she never bought one thing on credit. PM me and I'll tell you how that's done. It's the best thing you can give your child, a head start with perfect credit.