Question

1 Christian wants to transfer as much as possible to his 6 adult married children (including spouses) and 6 minor grandchildren without using any unified transfer tax credit.

a. How much can Christian give, so as to accomplish his tax goal without using any unified transfer tax credit?____

b. What if Christian's wife, Mia, joins in the gifts?____ They can gift $ without using any unified transfer tax credit.

2 Noah and Sophia want to make a maximum contribution to their state's qualified tuition program (Code § 529 plan) on behalf of their 5 grandchildren without exceeding the annual Federal gift tax exclusion.

a. How much can they transfer to the plan for grandchildren without incurring a current Federal gift tax?

Answer 1

1.

a. Christian can transfer $ 14,000 per individual to each on his four adult daughters (including spouses ) and eight minor grandchildren without using any unified transfer tax credit.The annual exclusion applies to gifts to each donee is $ 14,000 which is available to a donee since January 1st of 2013..Christian can transfer $ 224,000 in total

b. When a married couple want to combine their assests to give gifts to their children including spouses of their children and grandchildren, the annual exclusion limit is increased to $ 28,000. Hence when Mia wife of Christian joins in the gifts, their annual exclusion is upto $ 28,000 per each individual.Both Mia and Christian can transfer $ 448,000 in total