So each individual can gift $12,000 annually to anyone without tax consequence. Husband and wife can each give $12,000. What if husband and wife have a revocable living trust? Is the gift limited to $12,000 from the trust?
========================================= MODERATOR'S COMMENT: Change 12,000 to 13,000
A revocable trust is a pass-thru entity while the donors are living. You pay the taxes, etc. If it's a trust for both of you, $26K is the limit, and that's it. It's not separate from your own $13K/yr.
OK thanks (and thanks moderator for making the correction to 13 K). I am just wondering that with a trust, the annual limit becomes only 13K for both. So the 13K limit remains for each of the owner of the trust.
No, the annual limit is still $13,000 per donor per donee. The trust, if a revocable living trust, is generally ignored.
If you live in a community property state you can normally make a single gift of $26,000 and both fall within the exemption limit and not have to file a gift tax return.
However if you don't live in a community property state, so that the law doesn't treat the $26,000 as belonging half to each of you, you should file a gift tax return and claim a gift split, so that the gift will be treated as coming half from each, so that each half will still be within the exemption limit.
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