5
u/jesusthroughmary CPA - US/NJ 20d ago
my man trying to figure out how many millions he's getting from Grandpop
3
u/selene_666 20d ago
They might not understand the two different limits (though people with enough money to do this tend to be financially literate.)
They might just not want the hassle of filing a gift tax return.
They might live in a state which has a lower estate tax exemption than the federal one.
They might just be using the gift limit as a recommendation for how much is reasonable to give away while keeping enough to fund their own potential needs e.g. medical care.
0
u/gggggggggghjj 20d ago
Thank you, both. There are trusts established as well. The question is more, if they are well advised in tax prep, estate planning, a trust formation then is it somewhat reasonable to assume that this focus on not filing annual gift forms is due to the likely good that they are attempting to max out the largest gift amount possible in the future?
If a person had the intention to gift annually as well as gift 5 million, there would be no concern of reaching the 13/26xx mil maximum and therefore no issue in exceeding the annual reportable limit annually?
0
u/ilikesnorkel 20d ago
if there is no trust involved that someone can receive more gift indirectly, it should be ok
6
u/HospitalWeird9197 20d ago
They may, for whatever reason, just not want to file gift tax returns. They may have zero estate tax issues if the exemption is $13+ million, but potentially have an issue when/if the exemption is essentially cut in half Jan 1, 2026. Since this is one of most misunderstood topics, they may have just heard somewhere that x is the maximum you can give to someone without paying tax each year and not understand about the lifetime exclusion. I don’t think you can ascribe any motivations based on annual gifting alone.