What gifts can I make without having to pay gift taxes?
What can be done to minimize estate and gift taxes?
Various advanced estate planning strategies are employed to minimize estate and gift taxes. There are many factors that must be considered when tailoring a plan that will work best in each client’s situation. However, techniques that work exceptionally well for one client may be totally inappropriate for another client. The only constant is that clients with estate and gift tax concerns who are willing to invest in estate planning can expect to save much more in estate and gift taxes than they will spend in developing and implementing an appropriate plan.
It varies annually. In 2020, the threshold is $15,000 per individual. Gifts can be provided as cash, stocks, bonds, real estate, or any other valuable possessions. However, caution is advised if the recipient is potentially entitled to government benefits based on needs, as the gift might compromise such benefits or result in a period of ineligibility.
Individuals have certain gift tax and estate tax exemptions that apply. For example, each individual has a fourteen thousand dollar annual exclusion in terms of gifting per person per year. If you’re married, you and a spouse can transfer twenty-eight thousand dollars to any individual that you choose. You, also, have a lifetime gift tax exemption adjusted for inflation, which is currently about five and a have million dollars. Anything not used during lifetime can be used at death.
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