That is correct. The giver has already paid taxes on the money they have. And someone can receive a GIFT up to a certain amount each year.
“You can give up $12.92 million over your lifetime (tax year 2023) without being subject to gift taxes. This amount increases to $13.61 million for 2024.Oct 5, 2024”
This is why we gave the kids much of the house proceeds when we sold. I just couldn’t see waiting to be dead when they’re in the throes of life where the money would be the most helpful. Trudeau was yammering on about how to raise taxes more, and I knew gift taxes were on his hit list. I figured we best get the money to them now and not risk giving one red cent more to the corrupt tyrant.
thanks