Is there a gift limit age for children

is there an age limit ?

No.. and effective 1/1/09 the annual gift exclusion goes up to $13,000 to any person.

I think you have to be over 18 to do that.

If you're talking about an age limit for your child, there is no limit. However for children under 18, you will legally be in control of those funds. As a result you should make gifts in a way that makes it clear that the money legally belongs to your child, and that he can sue you later if you don't manage it in his best interests.

One way to do that would be to make the gift under the Uniform Gift to Minors Act in your state.

Stu

is there an age limit ?

Limit on the low side? No. I set up accounts the week JaneTaxpayer 2.0 was born.

You and anyone else may gift the child $12K each year. So, if her mom is around, it's $24K for both of you. Keep in mind, UGMAs become hers at 18 or 21, depending on the state, I believe. If this is a long term plan, the use of a trust may be wise. If these funds are for college, a 529 can be a good idea. If you go the 529 route, you are allowed to gift 5 years out, this year gifting $60K with no gift tax due.

Joe

If you use a trust other than a UGMA or 529 plan, it might be considered a gift of a future interest, and as a result would not qualify for the annual exclusion. This is another thing that a Crummey Trust can be used for, in addition to as an insurance trust, to avoid this problem.

Stu