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Richard
Richard, Tax Attorney
Category: Tax
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Under the 2011, 2012 new gift tax ruling, each spouse is allowed

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Under the 2011, 2012 new gift tax ruling, each spouse is allowed a $5mm lifetime exemption, or so I understand. If I give my brother $2mm and my daughter $2mm then I first deduct the $13K annual exclusion, and that leaves $1,987,000 subject to the gift tax. If I then use my $5mm annual allowance, to reduce my taxes owed to zero, then I am left with $1,026,000 to gift later. Is that correct and also can you give that large an amount to one individual in a year?
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