Bob and his wife Emily have agreed to make gifts each year to their three children.The maximum amount they can jointly give each year without incurring a potential estate tax on the gifts is

Question

Quizplus · Accepted Answer

As of my last update in 2023, the annual gift tax exclusion allows an individual to give up to $16,000 to another person without incurring any gift tax or affecting their lifetime estate and gift tax exemption. Since Bob and Emily can each give $16,000 to each of their three children, the calculation would be 2 (Bob and Emily) x 3 (children) x $16,000 = $96,000. However, since this option is not available, it seems there was a mistake in my calculation or the provided options. Typically, for a couple, the combined annual gift without incurring a gift tax would indeed be double the individual exclusion amount per recipient. Given the options and the standard practice, there seems to be a misunderstanding in the calculation or the premise of the question as it was presented.

Bob and His Wife Emily Have Agreed to Make Gifts