What are the gift tax exclusions and please explain? 4 Answers as of May 18, 2015

If I wanted to gift my grandchildren each a significant amount of money to take care of college tuition, what are my tax liabilities?

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Ronald K. Nims LLC | Ronald K. Nims
There is an annual exclusion and a lifetime exemption from the gift tax. The annual exclusion is $14,000 that mean you can give a person $14,000 every year without any gift tax effect. ?If a married couple is making the gift, the limit is $28,000 (husband can give $14,000 and wife can give $14,000) if the married couple is making a gift to a married couple the limit is $56,000. ? The lifetime exemption is currently $5,430,000. ?That means you can give a total of $5,430,000 (over any annual exclusions) to any number of people without paying gift tax. ?To use the lifetime exemption, you'll need to file a gift tax return to inform the IRS that you've used part or all of your lifetime exemption.
Answer Applies to: Ohio
Replied: 5/18/2015
Law Offices of Robert Beatson II | Robert Beatson II
Dear Sir/Madam, The facts need to be carefully reviewed and analyzed. An experienced tax attorney/accountant should be able to handle this.
Answer Applies to: Maryland
Replied: 5/15/2015
Irsfeld, Irsfeld & Younger LLP | Norman H. Green
In each calendar year, you can give each grandchild (and any other person) up to $14,000 in gifts without needing to file a gift tax return. You can also directly pay tuition to a school they are attending, and that won't count as a gift. Consider setting up a tax-favored "529 plan", which would enable you to give 5-years' worth of gifts to an educational fund for each grandchild. That means you could give $70,000 today, in effect pre-paying 5 years of gifts. Even if you are giving much less, it might be best to use a 529 Plan, to make sure the funds are used as you intend. In addition to all of that, you can give $5.43 million without having to pay any gift tax, though you will need to file gift tax returns.
Answer Applies to: California
Replied: 5/14/2015
Musilli Brennan Associates PLLC
Musilli Brennan Associates PLLC | John F Brennan
You have not provide sufficient information or allowing answer. You can give individuals a limited amount of money without having to file a gift tax return. I would strongly suggest you counsel with an attorney.
Answer Applies to: Michigan
Replied: 5/14/2015
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