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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

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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.

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