(a) The Gift Tax Law extends to any transfer by a minor child of property which he is legally competent to transfer.

(b) Since the earnings of an unemancipated minor child usually belong to his parents, the payment of the same to the parents by the child or his employer will not ordinarily constitute a gift. On the other hand, the payment of an emancipated minor child's earnings to his parents for whose support he is not legally liable will ordinarily constitute a gift.

(c) If the earnings of an unemancipated minor child are given, transferred, or released to, or are placed in a trust fund for the benefit of, such child by or with the consent of the parents, the amount so given, transferred, released, or placed in trust constitutes a gift to the child from the parents. However, if a portion of the earnings of an unemancipated minor child are given, transferred, or released to, or are placed in trust for the benefit of, such child by or with the consent of the parents, with the purpose of discharging the parents' legal obligation to support the child, and such portion of the child's earnings is reasonably necessary for the child's maintenance, the transaction does not constitute a gift.

(d) A transfer of property or payment of funds by an adult child or an emancipated minor child to or for his parents for whose support he is legally liable will not constitute a gift if the property or funds are reasonably necessary for the maintenance of the parents. However, the transfer or payment will constitute a gift to the extent that the property or funds are not reasonably necessary for the maintenance of the parents.

Note: Reference: Section 15104, Revenue and Taxation Code.