Mr. & Mrs. Clinton are in their 80s. They have saved millions of dollars and need to begin taking steps to minimize their estate tax liability. They have asked you for advice, and you tell them, "Give each of your children, grandchildren, and great-grandchildren a cash gift to start spending down your estate." Is this correct?

Question

Quizplus · Accepted Answer

Gifts are subject to annual exclusion limits, beyond which they may count against the lifetime estate and gift tax exemption. For 2023, the annual gift tax exclusion is $17,000 per recipient. Gifts beyond this amount require filing a gift tax return and may reduce the lifetime exemption if they exceed the annual limit, potentially affecting estate taxes later.

Mr & Mrs Clinton Are in Their 80s