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I am the beneficiary to my daughters life insurance policy.

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I am the beneficiary...

I am the beneficiary to my daughters life insurance policy. After I take the benefits and if I want to give then to her husband what is the maximum amount I can give him without him having to pay taxes. If I give him as a give is there a limited dollar amount a year he could receive?

Accountant's Assistant: The Accountant will know how to help. Is there anything else the Accountant should be aware of?

My accountant told me it was $1,000,000. Another accountant said $14,000 and another said $11,000 a year. So what is the amount?

Submitted: 1 month ago.Category: Tax
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3/16/2018
Tax Professional: Richard, Tax Attorney replied 1 month ago
Richard
Richard, Tax Attorney
Category: Tax
Satisfied Customers: 56,573
Experience: 29 years of experience as a tax, real estate, and business attorney.
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Hi! My name is Richard & I will be helping you today! It will take me a few minutes to type a response to your question. Thanks for your patience!

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Tax Professional: Richard, Tax Attorney replied 1 month ago

Good evening. You can gift a lot more than another $1,000,000 without any gift or income tax consequences. First, pursuant to Section 102 of the Internal Revenue Code, gifts are not income and thus do not need to be reported on the income tax return. There should be no gift tax consequences. 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 ($15,000 in 2018) per year per person under the annual gift exclusion. In addition to that, for any amounts in excess of the $14,000/$15,000 in a year, each person has a $5,490,000 lifetime exemption (raised to $11,200,000 in 2018)....which means a person can give a cumulative amount of up to $5,490,000 (raised to $11,200,000 in 2018) in gifts over and above the $14,000/$15,000 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 $5,490,000 (raised to $11,200,000 in 2018).

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Tax Professional: Richard, Tax Attorney replied 1 month ago

Just following up. My screen indicates that you have not reviewed my response. Please let me know if you did not receive it so I can re-send it if necessary. Thank you!

If I have fully answered your question(s) to your satisfaction, I would appreciate you rating my service as Good or Excellent (i.e., 4 or 5 stars)(hopefully Excellent/5 stars!). Otherwise, I receive no credit for assisting you today. I thank you in advance for taking the time to provide me a positive rating!

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