Answered

Discover the answers you need at Westonci.ca, where experts provide clear and concise information on various topics. Discover in-depth solutions to your questions from a wide range of experts on our user-friendly Q&A platform. Explore comprehensive solutions to your questions from knowledgeable professionals across various fields on our platform.

Barry and Mary have accumulated over $5.5 million during their 50 years of marriage. They have five children and two grandchildren. What is the total amount removed from Barry and Mary's estate in 2020 if they gift the maximum allowable amount to their children and grandchildren without incurring any gift taxes

Sagot :

abiolataiwo2015

The total amount removed from Barry and Mary's estate in 2020 if they gift the maximum allowable amount is $210,000.

Gift tax allowance for 2020 is $15,000

Number of donors = 2

A. Gift allowance for children :

Gift allowance = $15000× Number of donors ×Number of children

Gift allowance= $15000×2×5

Gift allowance= $150,000

B. Gift allowance for grand children:

Gift allowance = $15000× Number of donors ×Number of grand children

Gift allowance = $15000×2×2

Gift allowance = $60,000

Total amount of estate removed from Barry and Mary's estate in 2020

Total amount of estate removed= A + B

Total amount of estate removed= $150,000 + $60,000

Total amount of estate removed= $210,000

Inconclusion the total amount removed from Barry and Mary's estate in 2020 if they gift the maximum allowable amount is $210,000.

Learn more here:https://brainly.com/question/7576901

We appreciate your time. Please revisit us for more reliable answers to any questions you may have. Thank you for your visit. We're committed to providing you with the best information available. Return anytime for more. Your questions are important to us at Westonci.ca. Visit again for expert answers and reliable information.