Chapter 14 Giving While Living — The Annual Exclusion and the Lifetime Credit

The question If we help our children now, does it trigger gift tax? How do gifts over several years add up?

The answer Under US federal rules, the giver looks at two limits. The annual exclusion ($19,000 per person receiving, per year, in 2026) covers each qualifying gift of a present interest up to that amount (gifts of a future interest and some other kinds are treated differently). The part above it is a taxable gift, but tax is usually not paid right away: it uses up part of the lifetime unified credit — the same credit that later shelters the estate. The screen shows this year's gift and a running total over the years. A gift above the annual exclusion generally requires the giver to file Form 709.

14.0 In one line Each gift: annual exclusion first, then the lifetime credit. Keep a record — it adds up.

The full chapter is in the book. The web shows only each chapter's question, answer and one-line summary.