Quote:
Originally Posted by Bill14564
I don't think a person could live long enough or have enough children to give away $1B in chunks of $18,000/child/year. But yes, I understand the point.
The basic exclusion calculation was hard to find. The IRS says gift tax yes, unless no, but maybe yes, except for basic exclusion, which was increased in 2018, but significantly decreases in 2026, and then is only explained on the form but is explained in IRS-speak which is barely intelligible. Ultimately, it looks like you are correct but it sure isn't easy to figure out.
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First of all, the recipients do not need to be your child. It can be anyone.
The official name is the "Unified gift and estate tax". Gifts are made before death and your estate is the amount left over after death. But, it is all included into one tax liability. The $18,000 annual exclusion only applies to gifts made while you are alive. But, you can gift more than $18,000 per recipient as long as you don't exceed the total estate tax exclusion during your life, which is currently $13.61 million.