Have a Tax Question? Ask a Tax Expert
Welcome! My goal is to do my very best to understand your situation and to provide a full and complete answer for you.
Good afternoon. Actually, the lifetime exemption (which has taken the place of the unified credit) for 2012 is $5,000,000. So, you can give the first $13,000 to each child under the annual gift exclusion. And, then the remaining $37,000 to each child would be reported on the gift tax return to show how much of the lifetime exemption you are using. In any event, there would be no gift tax due.
I hope this has given you information that has been helpful toyou. If the information seems more general thanspecific, please be aware that we are only allowed to provide information andnot specific advice. If you have a follow-upquestion, please remember that there might be a delay between your follow upquestions and my answers because I may be helping others or taking a break.
If you do have any additional questions aboutmy answer please click the "Continue Conversation Link" so Ican provide you with a fully satisfactory answer. Pleasebe aware that any rating of 1 or 2 is reflected as a negative rating and I receiveno credit for my answers.
Thanks for allowing meto be of service to you. Please be aware that the information provided here isnot legal advice. Rather it is simply general information. All states have intricacies in their lawsand any information given is simply information only and specifically is notintended to be, nor does it constitute, legal advice. This communication doesnot establish an attorney-client relationship with you. I hope this answer has been helpful to you.