tex shalter wrote:
> Purely hypothetical. . . .
>
> Is there a way to pass on my $ 12,000 IRS yearly gift limit to my
children
> and not worry that their "first spouse" will end up with half of it if
> things don't work out.
Your question is a little sloppy, so hard to answer precisely. Couple
of points: there is no "gift limit", rather there is a record-keeping
requirement (via IRS Form 709) if the annual amount is over $12K per
person (unless you are talking about gifts approaching or exceeding the
7-figure range -- see a tax advisor for more information).
Second, a gift means, no strings attached. Assuming they are adults,
your children could turn around and hand the money over to the first
homeless person they meet, or gamble it all away in a wild night at the
casino, or let their spouse invest it for the future, and you have no
say. If you want some continued control over the money, then it's not
really a gift.
Third, in the case of a divorce, it's not a given the ex-spouse "will
end up with half of it". Even if it isn't already spent by the time a
divorce happens, there are so many possible outcomes that it's
impossible to predict.
If your goal is to "not worry", then consider alternatives such as a
loan instead of a gift, or passing on the money via inheritance.
-Mark Bole
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