Parents Gifting Their Children FYI

[Catatonic]

Before my parents passed away they gifted their children the max amount per year which I think was $13,000 a year. It may have increased by now.

The reason was to keep their total estate below a certain level before they died so any of their estate taxes over a certain amount ( think it was 600k )would not be taxed at about 50%.

none of the children needed the money but it was easy to understand their motives.

now the shoe is on the other foot and we will have to do the same thing soon. I am not sure if it is a good thing to give all our children $14k a year as gifts since they are only in their 30's but I would rather do that than give it to Uncle Sam.

or we could spend it all before we croak but i dont know on what. we have never been big spenders.

I would only give cash and not cash in stocks or real estate.

Start an educational fund to support higher educational needs of kids and their kids.

 

[Catatonic]

Absolutely. But people have the misconception that you can't do more than that.

Never heard or thought of that.
I guess "The 14,000 gift is another misunderstanding. That's the amount you can give without doing any paperwork. You. Could give you kids a million dollars if you wanted to. No income tax is due by you do need to file the paperwork."

 

[Indecisi0n]

I'm spending ever last time. Any left overs I am to be stuffed with before being buried.

 

[badpal]

The elimination of the inheritance tax was a big reason Mr trump won.