Can I Gift my Parents an Annuity?

[scagnt83]

Right, but isn't it $14k/yr to each person he gifts?

Good point. I think (not 100% sure) that he could do $14k to both his mom and dad. So you are correct that he could do a total of $56k over a couple week period. Of course it would be in 2 separate contracts, one for each parent. (not that it would matter)

 

[Buff Minorcan]

Learn something new everyday. Didn't realize I could just give my brother 100k and all the IRS stuff is on my end. Figured an excessive amount would require he claim it in some way.

But as long as I pay the overage tax he doesn't have to pay a penny.

 

[Tahoe Ray]

Learn something new everyday. Didn't realize I could just give my brother 100k and all the IRS stuff is on my end. Figured an excessive amount would require he claim it in some way.

But as long as I pay the overage tax he doesn't have to pay a penny.

You won't pay any overage tax. You just have to report it and it will be deducted from your lifetime exclusion.

It would be a good problem to have if you exceeded your lifetime gift exemption. It would mean that you have given away more than 5.43 million...hopefully, if you did that, you'd have a lot of assets in general.