I believe the "lifttime Gift" max as of 2009 is 1mil. Is this correct? They have to file a Gift Tax Return, but that is only for the sake of keeping tally on the life time gift, but no taxes are due.....I got the following off a website on gift tax rules....They were also told by their accountant that they would not have to pay taxes on this gift.
Any amount you use out of your lifetime gift tax exclusion counts against the estate tax exclusion, which is $2,000,000 as of 2008 and $3,500,000 as of 2009. This means that if you use $250,000 of the limit by making gifts during your lifetime, you have reduced by $250,000 the amount that can pass through your estate free of the estate tax. So you shouldn't ignore your lifetime limit even if you feel certain that your lifetime gifts will never add up to that amount. It pays to plan your gifts around the annual exclusion amount and the exclusions for educational and medical expenses wherever possible.
It does stink. Congress sees $$$ in those ROTHs and 401Ks that they do not have their hands on. They want money and need money.
Today the head of the AFL-CIO went to the President to push for a transaction tax on every stock, bond or mutual fund bought or sold. No amount per transaction was listed but the AFL-CIO is talking about $10 Billion in new taxes per year. Guess who wants the President to pass the money to his group!!
