Answer:
1. Barry and Mary can gift each of their children $28,000
2. Barry and Mary can gift each of their children $28,000
3. Amount removed = $140,000
Step-by-step explanation:
The total amount per year that can be gifted without reporting to IRS or paying any taxes is $14,000
1. So, each child can get $14,000 from Barry and $14,000 from Mary which totals to $28,000 per child
2. Each grandchild can get $14,000 from Barry and $14,000 from Mary which totals to $28,000 per child.
3. Total amount of estate removed from Barry and Mary = Total gifts to their children and grandchildren
Estate removed = Gift to 2 children + Gift to 3 children
Estate Removed = 2 * $28000 + 3 * $28000
Estate Removed = $56000 + $84000
Estate Removed = $140,000 per year
