Isaac Is Married and Isaac and His Spouse Agree That

question 47

Essay

Isaac is married and Isaac and his spouse agree that they want to transfer the maximum amount of cash to each of their four children and six grandchildren. How much cash in total can Isaac and his spouse transfer to his children and grandchildren each year without creating any taxable gifts?

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Definitions:

Endorser

A person who signs their name on a document, often a check, to indicate their approval or to transfer ownership to another party.

Drawer

In a financial context, the person who writes or issues a check or draft instructing a bank to pay a specified sum of money to a designated party.

Liable

Legally responsible or obligated.

Promissory Note

A written and legally binding promise to pay a specific sum of money to a designated party at a specified time or on demand.