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Message: <blockquote data-quote="Allen" data-source="post: 366859" data-attributes="member: 389">Correct, it is in the millions, currently I think it's 12 million and change now for a married couple because it's been indexed for inflation, but Congress also changes it every few years with swings between D and R control of Congress!And just so we're clear on this, the "gift tax" is really poorly named.  It's a simple paperwork exercise for probably greater than 99% of Americans.  A couple can legally leave up to $12,060,000 (jointly) to their heirs without incurring any inheritance tax.  If a couple (or an individual) were to gift money or something else of value, the IRS wants the gift tax paperwork filed with them.  Any gift tax paperwork filed ends up getting subtracted from whatever the current inheritance tax exemption is in the year you die.So, if I (being single) were to gift to my kids $50k each while I am alive, upon my passing the kids would only be able to inherit tax free $6,030,000 (my limit since I'm not married) - (2 x $50,000) = $5,930,000 since I have two kids.  Then again, I am hoping I live through at least a few more tax law changes of Congress, so who knows how it will eventually shake out.Ol' Rush Limbaugh used to constantly mention how much he admired George Steinbrenner's forethought.  George ended up passing away in 2010.  Because of infighting in Congress, there was ZERO federal inheritance tax in 2010, so George's kids/heirs got to inherit his billions (including the NY Yankees) free of federal inheritance tax.  I am not sure what NY has for inheritance tax, but many states have pretty substantial inheritance taxes. Gift tax laws are not overly complicated once a person understands the rules, but it's certainly poorly named.</blockquote>

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