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Originally Posted by JMintzer
Yup. There is a limit on how much you can "gift" a child per year without major tax ramifications...
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That is a law that is often misunderstood. Actually, you can give any individual up to $16,000 each every year with no tax consequences. But, even if you exceed that amount, as long as your entire estate does not exceed $12.06 million, you will owe no taxes. If you exceed the $16,000 annual limit in a single year, you just need to file a gift tax form, but you will owe no taxes until you exceed the lifetime $12.06 million amount. Note that the $12.06 million lifetime limit is scheduled to decrease to $6 million in 2026.