Question

Barry and his wife Mary have accumulated over $6 million during their 50 years of marriage. They have six children and eight grandchildren. How much will Barry and Mary remove from their estate if they gift the maximum amount possible in 2013 to their children and grandchildren without incurring any gift tax liability?

Answer 1

$84,000

Step-by-step explanation:

Based on the scenario being described within the question it can be said that the maximum amount that they can gift would be $84,000. This is because the maximum that can be given in 2017 is $14,000 to any single individual. Therefore the maximum is calculated as the following = $14,000 × Number of children × Number of spouses giving gifts . Now we plug in the values from this situation:

=$14,000 × 3 × 2

=$84,000

Leaving us with a total gifting amount of $84,000