Question

Christian wants to transfer as much as possible to his 6 adult married children (including spouses) and 15 minor grandchildren without using any unified transfer tax credit.

a. How much can Christian give, so as to accomplish his tax goal without using any unified transfer tax credit? $

b. What if Christian's wife, Mia, joins in the gifts? They can gift $ ? without using any unified transfer tax credit.

Answer 1

The annual federal gift tax exclusion allows you to give away up to $15,000 in 2019 to as many people as you wish without those gifts counting against your $11.580 million lifetime exemption ( unified transfer tax credit) . And if you're married, You and your spouse are each entitled to a $15,000 annual exclusion i.e. $30,000 per person ($15,000+$ 15,000). Thus, in the light of above provision:

a. Christian can give a total of $ 405,000 i.e $ 15000 each ($ 180,000)to 6 children and their spouses and balance $ 15000 each to 15 minor children.

	Children	Children's Spouses	Grand Children
	6	6	15
	$15,000 each	$15,000 each	$15,000 each
Christian	$         90,000	$                      90,000	$            225,000
Total	$         90,000	$                      90,000	$            225,000	$ 405,000

b. If Christian's wife joins him in the gift, then the amount of gift will be $ 810,000.

	Children	Children's Spouses	Grand Children
Nos.	6	6	15
	$15,000 each	$15,000 each	$15,000 each
Christian	$         90,000	$                      90,000	$            225,000
Christian's Wife	$         90,000	$                      90,000	$            225,000
Total	$       180,000	$                    180,000	$            450,000	$ 810,000