Q: I am in my late 70s and have been gifting money to my children each year. Can I make tax-exempt gifts to my grandchildren in addition to the money that I give to my children?
A: Yes, in 2013, an individual may gift up to $14,000 (the annual gift exclusion) per person per year without the necessity of filing a gift tax return. This includes children and grandchildren. In addition to the $14,000 annual gift exclusion, an individual may also pay for tuition and health care expenses, provided payment is made directly to the educational or the health care provider. Thus, you can gift your grandchild $14,000, pay his or her tuition and medical expenses each year. If you have additional questions related to wealth transfers you should contact a Trusts and Estates attorney.
Patricia Galteri is Chair of the Trusts and Estates Practice Group in Garden City, NY. Her practice includes the development of estate and family business plans to ensure the tax efficient transfer of wealth to the next generation while meeting the specific personal goals of her clients.
For the past fifty years, the law firm of Meyer, Suozzi, English & Klein, P.C. has created a reputation for integrity, insight and intellect that has helped establish the standard for excellence in the practice of law. With offices in Albany, Garden City, Manhattan and Washington, D.C., the firm provides legal advice in the areas of Alternative Dispute Resolution, Bankruptcy, Corporate Finance, Corporate, Criminal Defense, Disability Insurance Claims, Employee Benefits, Employment Law, Government Relations, Labor Law, Litigation, Real Estate, Tax Certiorari & Condemnation, Trusts, Wills and Estates. “Ask the Lawyer” is provided by Meyer, Suozzi, English & Klein, P.C. to inform on matters of public interest. The information contained herein is not to be construed as legal advice or opinion. We provide such advice or opinion only after being engaged to do so with respect to particular facts and circumstances.