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Author: TMFJeanie Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 1987074  
Subject: Re: My position on the nation's most important i Date: 6/8/2006 12:53 PM
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I'm for raising the bar to $5,000,000 and keeping the $10,000 tax-free annual gift or whatever they've raised that to.

The annual gift ceiling has been raised to $12,000 now. This is actually more generous than it sounds. Take an example of an uber-affluent couple in their late 50s who want to begin transferring their wealth. Let's say the couple has two children, both married, both having two kids of their own.

Mom and dad can each give $12k (total $24k) to each of those 8 people, for a total giveaway of $192,000 -- and they can do this every year. Assuming the ceiling remains the same, over 20 years they will have transferred $3.8MM, and then they can begin adding their great-grandchildren to the mix.

I'm no tax expert, but don't these gifts go a long way towards reducing the value of their taxable estate at death?

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