‘Tis the season for gift giving! This time of year can be stressful with the hustle and bustle of the holidays. But maybe this year you aren’t looking for the hottest deals or the most popular toys to give. We can help you prepare if you’re considering gifting part of your estate. Here’s a quick guide to the laws and taxes of lifetime gifting from your estate.
Gifting From Your Estate During Your Lifetime
Gifting parts of your estate during your lifetime is a great way to avoid taxes and for your loved ones to avoid taxes later on. But knowing the limits is key to avoiding unnecessary fees and losing money. It’s all about the amount you’re giving and where it’s coming from.
For traditional gifting from your estate where you are transferring assets, the exemption is at an all time high of $11.7 million or $23.4 million from a married couple, meaning if your estate totals that amount or is less, then you can transfer tax free. If your assets total more than this amount then you would be subject to taxes. There are, however, new laws currently being proposed to change this. So if starting to gift your estate is something you’re thinking about, consider gifting by the end of the year to avoid taxes.
If you’re considering giving a smaller amount, but still not sure what the limits are for taxes, you are able to give cash up to a certain amount. Currently you can give a gift of $15,000 per individual or $30,000 per married couple, without tax implications and this can be done for as many people as you like.
Know The Limits of Lifetime Gifting From Your Estate
Giving during your lifetime is a great way to witness the impact that your generosity may have on your loved ones’ lives. While there are tax implications to consider in the way you give, it’s also important to make sure that you aren’t going outside of your means just to avoid taxes. Having a well thought out plan for your retirement, finances, and family financial goals, will help you stay on track with what you still need during your lifetime to live the way you want. If you haven’t factored lifetime gifting into your estate plan but want to look at options, talk to a professional to make sure your goals can be obtained in the best way possible.
We can help you if you need an estate plan or need to update an existing plan. Contact us for your free initial consultation so you can have a peaceful holiday season knowing your loved ones are taken care of.
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Disclaimer: This article is intended to serve as a general summary of the issues outlined therein. While this article may include general guidance, it is not intended as, nor is a substitute for, qualified legal advice. Your review or receipt of this article by Lexern Law Offices, Ltd. (the “LLG”) or any of its attorneys does not create an attorney-client relationship between you and the LLG. The opinions expressed in this article are those of the authors of the article and does not reflect the opinion of the LLG.