Giving to Your Children

Can a husband and wife give their daughter and son-in-law separate cash gifts?. Suchas; 14K from the wife and another 14K from the husband to each of the newlyweds, totaling 28K to each for a total of 56K as a couple?

Yes. You are allowed to give $14,000 to any individual per year without having to worry about the gift tax. Married couples can combine this annual exclusion to jointly give $28,000, tax-free. For example, a couple with an adult child who is married and has two children could make a joint cash gift of $28,000 to the adult child, the child’s spouse and each grandchild–four people–providing the family with $104,000 a year.

If some of the recipients are minors, their portion of the gift may go into a custodial account that designates an adult to oversee the money, generally until the child reaches age 21. Just don’t name yourself as the custodian, because the funds could be considered part of your estate. Instead, name the child’s parent, who can use the money to enrich the child’s life with things like dance lessons, summer camp and after-school programs.