Question

Barry and his wife, Mary, have accumulated over $4.1 million during their 50 years of marriage. They have three children and four grandchildren. What is the total amount of estate removed from Barry and Mary's estate in 2017 if they gift the maximum allowable amount to their children and grandchildren without incurring any gift taxes

Answer 1

Starting 2019, the federal gift tax exclusion is $15,000 per children or grandchildren. That amount was supposed to be increased with inflation during 2020, but I couldn't find any new amount.

total tax free gifts = ($15,000 x 3 children) + ($15,000 x 4 grandchildren) = $105,000

The $105,000 given today will decrease the $11.4 million lifetime exemption allowed for estate taxes.