What Is the Maximum Gift Allowed Without Triggering the Gift Tax?

What Is the Maximum Gift Allowed Without Triggering the Gift Tax?

As of 2015, the maximum gift allowed without triggering the federal gift tax is $14,000 per individual each year, with no limit on the number of individuals, according to Bankrate. In addition, a donor can give unlimited amounts to a spouse, charities, political organizations, and educational and medical institutions.

A donor must make a gift of tuition directly to an educational institution for the gift to qualify under the unlimited gift provision. The provision does not cover room, board, supplies and books, notes Bankrate. A donor paying someone else's medical expenses must give the funds directly to the medical facility to avoid triggering the gift tax. Donors can give away $5 million during their lifetimes without paying gift taxes, not including inflation adjustments.