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As you can see these amounts have changed over the years.
Ok, what does the above reference mean? What is means that currently, U.S. citizens are allowed to gift up to $14,000 annually to any one individual without creating a taxable event (without any forms having to submitted to the IRS). Gift amounts that exceed the $14,000 will require the donor to complete a Form 709,which is a gift tax return (informational purposes only--no tax due by the donor). Currently there is a lifetime gift exclusion of $5,250,000 for U.S. persons, which means that they can gift away this amount in their lifetime and not have to pay tax on it. For more detailed information, you can refer to the IRS Pub 950, which should shed a bit more light on this matter for you.
Link to Pub 950:
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Thank you Angela. So basically my grandfather can give away up to $5,250,000 and spread it to his children and grandchildren even now. Just the only thing he needs to do is to file the form 709? He will not pay any tax on it? Where do I find the form 709?
Thank you in advance.
Thank you. So in case he give us the money now. He can file the form when available, correct? What happens in the worst case, he dies before this form gets available. Do I need to do anything?Thanks!
Thank you. So if this is happening we need to pay tax on it? How do I make sure that the estate tax return is filled out properly and how do I know by whom this is done? Sorry I do not live in the US!
Thank you Angela for this valuable information.