Last week we learned that's how much Uncle Sam gives us to pay our gift (and estate) taxes.
If you give away $5,490,001, then you owe Uncle Sam 40 cents. Simple enough, right?
But what about the $14,000 a year that everyone talks about? How's that fit in?
It's very simple. You can give $14,000 away each year and it won't count against your $5,490,000.
The cool (is that a stretch?) part is that you can give $14,000 to everyone you know and it still won't count against your $5,490,000.
It gets better. Your spouse can give $14,000 to everyone THEY know and it won't count against their $5,490,000.
So if you and your spouse want to give your kid $28,000 every year for the rest of his life, then you'll still have $10,980,000 left to give away.
Disclosure: This blog is for educational purposes only and should not be considered financial, tax or legal advice. These statements have been simplified to illustrate the concept. Consult your Financial Planner or Estate Attorney for help with your specific situation.