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It used to be ten thousand I know, but what is the annual federal gift tax exclusion now? And that means I can give that amount each year to each of my grand-kids without them having to pay gift tax. Is that right?

Editor's Response

Yes.  Currently, the annual gift tax exclusion amount is $12,000 per person, per year. Just to clarify, if you exceeded that amount in any given year (for any single person), YOU (the donor) would have to pay a gift tax, not your grand kids.  The money is not income for your grand kids, because neither Massachusetts nor the IRS considers a gift to be income.  Also, there is no gift tax in Massachusetts.  For more information or to post a question, visit our MA Elder Law Discussion Forum.

 

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