Your children would not have to pay the gift taxes: you would. The annual gift tax exclusion for 2018 is currently $15,000. The lifetime exclusion for individual taxpayers is $11 million. So unless you are planning on making a really big gift, you probably don't need to worry about having to pay gift tax.
Ms. Willi is a tax attorney, CPA, and Ohio-Certified Specialist in Estate Planning, Trust & Probate Law, with offices in Westerville, Ohio. She serves client families and private business owners throughout Ohio. Ms. Willi responds to Avvo questions as a public service to help educate and provide general guidance to questioners, but her responses are not legal advice and do not create an attorney-client relationship. Her posts are provided for informational purposes only and are not a substitute for advice provided by an attorney or licensed tax professional. Her phone number is 614-890-0500 and her website is www.willilaw.com.
For Federal purposes you are allowed an $18,000 exclusion per person per year that you can gift to without gift tax consequences. You also get about $11,000,000 in total life time exclusion if you go over that amount.
Mr. Lively is a Certified Tax Specialist by the State Bar of California Board of Legal Specialization. Any individual seeking legal advice for their own situation should retain their own legal counsel as this response provides information that is general in nature and not specific to any person's unique situation. Circular 230 Disclaimer - Advice given in this response cannot be used to eliminate penalties with the IRS or any other governmental agency.
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