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Richard
Richard, Tax Attorney
Category: Tax
Satisfied Customers: 53964
Experience:  29 years of experience as a tax, real estate, and business attorney.
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We received an inheritance and want to gift a significant portion

Customer Question

We received an inheritance and want to gift a significant portion to our children. Will they be taxed on anything above 14,000.
Submitted: 7 months ago.
Category: Tax
Expert:  Richard replied 7 months ago.
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Expert:  Richard replied 7 months ago.
There will be no gift tax consequences to either of you. Recipients of gifts are not subject to gift tax. And, there should also be no gift tax due from the donor. Each donor can give $14,000 per year per person under the annual gift exclusion. In addition to that, for any amounts in excess of the $14,000 in a year, each person has a $5,450,000 lifetime exemption....which means a person can give a cumulative amount of up to $5,450,000 in gifts over and above the $14,000 annual gift exclusion amount without incurring gift tax....the donor must file a gift tax return to let the IRS know how much of the lifetime exemption is being used, but there will be no gift tax until cumulative additional gifts have exceeded the $5,450,000. Thank you so much for allowing me to help you with your questions. I have done my best to provide information which fully addresses your question. If you have any follow up questions, please ask! If I have fully answered your question(s) to your satisfaction, I would appreciate you rating my service as OK, Good or Excellent (hopefully Good or Excellent). Otherwise, I receive no credit for assisting you today. I thank you in advance for taking the time to provide me a positive rating!