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

2 answers | Last updated: Sep 04, 2014
A fellow caregiver asked...

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


Expert Answers

Barbara Steinberg is the CEO and founder of BLS Eldercare Financial Solutions, which specializes in helping families pay for long-term care for their loved ones. A registered financial gerontologist, she speaks regularly on the topic of paying for long-term care and is a financial expert for Caring.com.

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 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.


Community Answers

Braydon answered...

in response to the above, can you give up to $12,000 total or up to $12,000 each to as many people as you wish.