There are several options for Bob and Ann to decrease their taxable estate. Using the gift
tax exclusion, gifting in the form of a trust, and donating to college savings programs are among
alternatives. As of 2018, you can give a person $15,000 tax-free. Because Bob and Ann are
married, they may give a total of $30,000 to each member of their family. Bob and Ann can
decrease their taxable estate by $660,000 by donating a maximum of $30,000 yearly to each
child and grandchild. (2018) (Ebeling). Gifting in the form of a trust may be an excellent choice
for Bob and Ann, who have fifteen grandchildren. A gift in the form of a trust can limit access or
usage.
Putting up a Section 529 plan for their grandkids is a terrific way for Bob and Ann to
lower their taxable estate. They can use the 529 plan to make a one-time contribution that is
considered as if it were given over the course of five years. This permits Bob and Ann to give
$75,000 each tax-free, for a total contribution of $150,000. To avoid taxation, money invested
