A widower wants to gift as much as possible to his three children without making taxable gifts and without using any of his applicable credit. What is the total amount he can give in 2026?

A widower wants to gift as much as possible to his three children without making taxable gifts and without using any of his applicable credit. What is the total amount he can give in 2026?

• A. $19,000
• B. $57,000
• C. $76,000
• D. $95,000

Answer: (B)

The key idea is the annual gift tax exclusion, which lets you give a certain amount to each person each year without it counting as a taxable gift or using any of your lifetime credit. In 2026, you can gift up to 19,000 to each individual without triggering gift tax or touching the applicable credit. Since there are three children, you can give 19,000 to each one, totaling 3 × 19,000 = 57,000. Giving at or below that per child keeps everything within the annual exclusions and uses none of the lifetime credit. Any amount beyond 19,000 to a single child would require using part of the applicable credit.

The key idea is the annual gift tax exclusion, which lets you give a certain amount to each person each year without it counting as a taxable gift or using any of your lifetime credit. In 2026, you can gift up to 19,000 to each individual without triggering gift tax or touching the applicable credit. Since there are three children, you can give 19,000 to each one, totaling 3 × 19,000 = 57,000. Giving at or below that per child keeps everything within the annual exclusions and uses none of the lifetime credit. Any amount beyond 19,000 to a single child would require using part of the applicable credit.