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Investing - Theory, News & General • Gifting to Children

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We are 68 & 63, have won the game so to speak, presently have savings of around 45-50 times of our annual expenses.

We are looking to gift money to our children who are 40 & 32, we do give $36000 to each a year & may have to fill Form 709 if we give any more in a year.

I understand presently the lifetime gifting limit is $13 m each, which may soon come down to $ 5 to 7 m each.

Our state does not have any Estate Tax apart from what ever the Federal Estate Tax, which I hear is to a tune of 40%

Question - Is the Life time Gifting Limit to a person the same as the estate limit beyond which the Tax is applied ??
OR
the estate (inheritance) tax after we pass away is different ??
The Estate Tax will be paid by our children.

Question - The present Step Up in basis on our Brokerage Taxable account may be taken off & children may end up paying the Capital Gains Tax after we pass away

Thanks for helping my understanding of these issues

Statistics: Posted by Rajsx — Fri Sep 27, 2024 3:20 pm — Replies 9 — Views 638



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