Question of the Week

Justin and Britney, multi-millionaires, want to make the maximum gift of cash to their two (2) grandchildren this year, without incurring any gift taxes on the transaction. How much can they gift?

a) $24,000
b) $12,000
c) $48,000
d) $44,000

Answer:

The correct answer is c.

A donor of money and/or gifts may give up to $12,000 to as many different recipients as they desire in any given year and not have to pay any gift taxes on those gifts. So, a married couple can gift up to $24,000 per child each year or $48,000 to the two (2) grandchildren.