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Financial Planning / Tax Strategies


Subject:  Gift tax Date:  7/17/2018  2:20 PM
Author:  RBMunkin Number:  127827 of 130846

Can someone interpret this for me?

"For 2017, the estate and gift tax exemption is $5.49 million per individual, up from $5.45 million in 2016. That means an individual can leave $5.49 million to heirs and pay no federal estate or gift tax. A married couple will be able to shield just shy of $11 million ($10.98 million) from federal estate and gift taxes. The annual gift exclusion remains at $14,000 for 2017."

Does this mean an individual can give $5.49M in TOTAL without paying tax, but only $14K per year? I don't get it. It would take lifetimes for $14K to add up to $5.49M!

The bottom line question I have is how can my mother gift her sons $300K all at once without paying tax? Is that possible or is it limited to $14K per year?

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