Question
Your client Julie is a widow with 12 grandchildren. Her assets are currently $30 million. It is her intention to leave everything equally to her
Your client Julie is a widow with 12 grandchildren. Her assets are currently $30 million. It is her intention to leave everything equally to her grandchildren, with nothing going to charity. You told her that she can make gifts to her grandchildren every year that are free of any kind of gift taxes and wont impact her estate being able to deduct the full amount of her lifetime exclusion. Assume that she takes your advice and does the maximum gifts every year to her grandchildren. She is able to do this for 8 years, until her death 9 years from now.
Question Calculate how much this strategy of gifting over those 8 years would save her family in taxes
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