Is it possible to avoid running down your Unified tax credit through the following arrangement?

A wants to gift $100k to B. Instead of gifting 100k to B, A gifts 10k to ten persons, who agree to gift the 10k he receives to B. Is this legal?

Asked on June 27, 2009 under Estate Planning, California


MD, Member, California Bar / FreeAdvice Contributing Attorney

Answered 11 years ago | Contributor

Interesting.  Here is the deal: Gift tax limits are set so that someone can give let's say $10k per person (unlimited number of people). 

There is nothing wrong with gifting, however, the person who receives a certain amount may be subject to other taxes based on the high amount. 

Contact and check his or her record at the California State Bar at under attorney search.

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