Question

Barry and his wife mary have accumulated over $2 million during their 35 years of marriage. they have three children and five grandchildren. how much money can barry and mary gift to their grandchildren in 2013 without incurring any gift tax liability

Answer 1

You are permitted to give up to $13,000 each year to any individual without acquiring gift tax liability. So, Barry and Mary each can gift $13,000 to anyone of their choosing. For eight recipients (3 children and 5 grandchildren), each can gift $104,000. Consequently, Barry and Mary can offer $208,000 ($104,000 x 2) to their children and grandchildren in 2013.