Barry and his wife, Mary, have accumulated over $4 million during their 50 years of marriage. They have two children and three grandchildren.
How much money can they gift to their children in 2017 without any gift tax liability?
The annual gift exclusion for 2017 is $14,000 per person. This mean if Barry and his wife transfers $14,000 as gift to per child then this amount would not be subject to gift tax in 2017.
Barry and his wife has 2 children and each of them can transfers $14,000 to their two children
The amount Barry can gift 2 children is ($14000*2) = $28,000
The amount Barry's wife can gift 2 children is ($14000*2) = $28,000
Thus, in total $56,000 ($28,000+$28,000) paid to their children would not attract any gift tax liability.
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