Don't Let Giving Get You

It's a great thing if you want to give money to help someone. It's not great if you give too much.

QUESTION: Anthony asks about giving money to children, and how it affects them tax-wise. Dave says it doesn’t affect her, but the giver is a different story.

ANSWER: You can give up to $12,000 a year from one person to another. After that, you have gift tax to worry about. If you are married and your grown child is married, you can give them each $12,000 and have no taxes. Your wife could do the same thing and there would be no tax. If you want to do more than that, you can use part of your federal estate tax exemption before you die toward a gift.