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  1. #1
    Join Date
    Sep 2016

    Default How Much Money Can an Elderly Parent Gift to a Child

    How much money can an elderly parent give to a child without creating any tax problems?

  2. #2
    Join Date
    Sep 2005
    Behind a Desk

    Default Re: How Much Money Can an Elderly Parent Gift to a Child

    The current annual gift tax exemption is $14,000, so a parent may make a gift of up to $14,000 per year without any tax issues. The exemption applies to each recipient of a gift -- so the parent can give up to $14,000 per child (or other recipient). If both parents are living, they may give up to $28,000 per child, and allocate the gift between themselves ($14,000 each). The parent should file IRS form 709, an advisory form that does not create any tax liability, to document or allocate the gift.

    The current lifetime exemption from gift taxes is more than $5 million (for 2017, it's $5,490,000), so most people will not encounter gift tax liability no matter how much they give away during their lifetimes. Annual gifts that fall below the annual exemption are not counted toward the lifetime cap, although for large gifts the paper trail created by Form 709 filings will help avoid possible gift tax liability if a parent crosses the lifetime exemption.

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