Reply to Minimizing taxes when transferring money between parents and adult children

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[quote=Anonymous]Each individual grandparent can gift $14 to each individual in your family.  If you are married, each grandparent can gift $14 to you, to your spouse and your child.  So, they can gift up to $84K per year to your nuclear family of 3.  They can gift up to $112K if you have 2 children.

[quote][quote]Wait...so when I was younger and my parents paid for private school, college and my masters...all those tuition costs will later be added up and count against the 5.45M estate tax exemption (11M couple) when my parents pass on? They've got a bunch of real estate and I think it'll be above the 11M threshold. Or are tuition costs exempt?[/quote]

You were a dependent when these tuition payments were made. Besides the fact I'm sure if your parents have an 11mm estate they have it figured out.[/quote]

Yes, in this case you were a dependent.  Your children qualify as dependents until age 19 if not a full-time student, to age 24 if a full-time student.  Any tuition, expenses, gifts paid after the child passes those ages will be included.  This is the IRS definition for dependency:

[url]https://www.irs.gov/publications/p17/ch03.html[/url]
[url]https://www.irs.gov/businesses/small-businesses-self-employed/frequently-asked-questions-on-gift-taxes[/url][/quote]

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