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Can my mother give tax free gifts to family members like grandchildren?

2 answers | Last updated: Jan 12, 2011
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Can my mother give tax free gifts to family members like grandchildren?
 

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Barbara Steinberg is the CEO and founder of BLS Eldercare Financial Solutions, which specializes in helping families pay for long-term care for their...
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Everyone can gift up to $12,000 per year to as many people as they wish and not have to file any gift tax returns or report it anywhere else. The See also:
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recipients do not have to be relatives. Recipients never pay taxes on gifts received. A married couple can pool their gifts and give up to $24,000 per year to as many individuals as they wish and not have to file any gift tax returns. In addition to these non-reportable gifts, everyone has a lifetime gift tax exclusion of $1,000,000. For every gift that is over the $12,000 exclusion, a gift tax return must be filed. However, no gift tax will be due until the cumulative value of gifts over $12,000 reaches $1,000,000. For a married couple, each spouse has a $1,000,000 exclusion. These thresholds are in effect during 2008.

 

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