I have a client who has 2 children. She owns around 26 acres worth say 150k for simplicity. Now she wants to break that up and give half to each son for Christmas. I have advised that if she does that she will owe gift tax on the amount over 28k for each son. Since she is married they can gift split 28k to each. So she would be on the hook for the gift tax above the gift exemption correct?
The solutions I see are to break the land up and give it them each year under the gift exemption, or wait and let them inherit it correct?
The solutions I see are to break the land up and give it them each year under the gift exemption, or wait and let them inherit it correct?
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