Individuals may give another person up to $10,000 per calendar year

DEAR BRUCE: Is it true that relatives can give up to $10,000 per calendar year to family members tax-free, or is it only between parents and children? Can my husband's parents each give $10,000 to my husband and $10,000 to me in the same year for a total of $40,000, or is it a total of $10,000 to us? Can brothers and sisters give to each other? -- Lori, via e-mailDEAR LORI: It is quite simple. Any individual may give any other individual up to $10,000 per calendar year without any tax consequences -- there is no relationship requirement. Therefore, your example of $40,000 would be accurate.

DEAR BRUCE: My wife and I purchased a home for rental. It isn't mortgaged. Our lawyer asked how we wanted the deed written -- "and" or "or"? He suggested we use "and." But I hear from friends and other lawyers that one should always use "or." Our estate is well over the $625,000 requirement. I am confused. -- R.T., Lexington, Ky.

DEAR R.T.: I would need much more information to give you good advice. You didn't mention whether or not you have children, where your estate is to go or if you are going to pass some of it beyond the first person who passes away. All of those questions and more would have to be answered by a qualified estate planner before an informed decision could be made. DEAR BRUCE: I am 23 years old and at my first job out of college. We have a 401(k) program. Should I invest in it or continue to invest in stocks and mutual funds directly? -- J.G., via e-mailDEAR J.G.: Send your questions to: Smart Money, P.O. Box 503, Elfers, Fla., 34680. E-mail to: bethlil@gte.net. Questions of general interest will be answered in future columns. Owing to the volume of mail, personal replies can't be provided. Newspaper Enterprise Association

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