Justin and Britney, multi-millionaires, want to make the maximum gift of cash to their two (2) grandchildren ...

By Investopedia Staff AAA
Q:
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
A:
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.

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