Question

Barry and his wife, Mary, have accumulated over $3.5 million during their 50 years of marriage. They have three children and five grandchildren. How much money can they gift to their children in 2017 without any gift tax liability?

Answer 1

Answer:

$208,000

Step-by-step explanation:

For 50 years of marriage, Barry and Mary accumulated over $3.5million.

They have 3 children and 5 grandchildren which gives a total of 8.

You are allowed to give up $13,000 each year to a person without incurring tax liability.

This means Barry and Mary can give $13,000 to anyone each

For the 3 children and 5 grandchildren, Barry and Mary can gift $(13000 * 8) each

= $104,000 each

Therefore, Barry and Mary can gift $208,000 (104,000*2) to their children in 2017 without gift tax liability