Cashing in a CD--Good Idea?

Q: My elderly mother would like to cash in an $80,000 CD and divide the money between the 4 children. Is this a good idea? How does it effect the children?

A: The federal annual limit is $12,000 so if she wants to do that she might consider doing part before 12/31 and then the rest after so it's spread across two years.

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