Whether your gift is to a child or grandchild, if your gift is at or below this amount, no return is required.
For gifts above that amount, a gift tax return may be required, but each person also has a lifetime exemption of $13,610,000 lifetime credit (up from $12,920,000 in 2023) which can be used to make gifts to children and grandchildren and/or their spouses. before they must begin to pay tax.
There is also a provision that allows you to pay more for a child or grandchild's college education but only if the payment is made directly to the college or educational institution.
Be careful, however to get advice about filing a gift tax return, and the best strategy for optimizing transfers to children or grandchildren.
For questions of more information about transfering wealth through gifting, trusts, and wills, call our office to set up a consultation, 610-933-8069
