Most People Understand The Gift Tax Exclusion Of $15,000 Per Person Per Year
As a couple you can give $30,000 to a child and no tax, no report, nothing. You can give the $30,000 to as many people as you want.
Now, If You Go Over The $15,000
Let’s say my wife and I give a child $100,000, That is $70,000 too much. Now the Lifetime Gift and Estate Tax Limits come into play. For 2018 a person’s gift and estate tax limit is $11.180M. Yes, over $22M per couple.
Now back to our $70,000. No tax this year for anyone. But you must make a simple report to IRS to tell them that you did this and subtract it from your $22.360M. You subtract $70,000 and you still have $22.290M for more gifts or for estate taxes.
I am not too worried about gift or estate tax problems as we are fine, but not $22M fine. BTW, just did a report like this for some relatives. The form is IRS 709.
Stop worrying and give some money away now. Did you need money more at 40 or at 70? Just asking, for you know you are going to live forever, you are gonna learn how to fly (high).