USA Gift dispersal

[Carrie Trant]

My mother would like to gift $10k every quarter for four years. That's $40k/yr or $160k total after four years. Is there any detriment to dolling out the gift in this manner? I understand how the gift tax works. Just seems like a lot of withdrawls and deposits that might be more beneficial if deliniated in a better way. Thanks for any help.

 

[Drmdcpa]

The current annual gift tax exclusion is $14k. This means she can give up to $14k to any person in any year and not have gift tax issues.

If the $40k she gives goes to different people so as to not violate the annual exclusion then she can do what she wants.

If she violates the annual exclusion she would be required to file a gift tax return. In such cases, I would recommend restructuring the gifts to avoid violating the annual exclusion.