RE: An Open Letter to My Parents—2013 Annual Exclusion Goes Up to $14,000

Dear Mom and Dad, Good news, for the first time since 2009 the IRS has raised the gift amount allowable under the annual exclusion.  In 2013 a person will be able to give $14,000 to any and each donee, free of gift tax (see Rev. Proc. 2012-41). As an example, in 2013 I will be able to give each of my five children $14,000, or $70,000 total.  Because my wife will also be permitted to make use of her own annual exclusion amount, together we can give up to $140,000 to our children next year, free of gift tax, under our combined...