So the background of what I'm trying to find out
My grandmother, whom lives with me, had my late grandfather's pension bought out by JC Penney for a pretty hefty sum of money. We want to buy a car for my cousin who has been without one for a little while.
What we really wanted to do was just give her the money and let her buy the car herself so the vehicle would be in her name, but then I remembered, I think if we give her a substantial sum of cash, won't it be taxed?
That said, we do want the car to end up in her name. So, that said, what would the best route to be to get to that destination?
The car is going to be paid for in cash, straight up.
We're in TN for local tax laws. I'm also curious as to how much she is going to be taxed on income because of this. She is by no means wealthy at all; this is just a buyout of a very long, multiple-decade pension plan that was until now half of her living income (social security)
Thanks for any help.