Starting this year, every individual can gift $14,000 each year to as many people as he or she wishes to lower his or her taxable estate. Most people leave their estate assets to loved ones in a Will or Trust, but the lifetime gift exemption of $5 million per person enables you to lower your estate tax threshold and enjoy the gift of giving.
If a parent gives $14,000 a year to each of her three children and seven grandchildren, she would reduce her estate by $140,000 (10 x $14,000) a year (or $280,000 if the donor parent and her spouse both give the same amount). The donor parent would also benefit from seeing her children and grandchildren enjoy the gifts.
Beyond outright cash gifts, contribution to a 529 college savings plan or paying medical expenses directly to the provider also qualifies for a gift tax exemption.
The Flanigan Law Group provides Southern California residents with personal attention for estate planning, administration and litigation legal services. When disputes between families, arise, they are very successful in resolving legal estate issues quickly and efficiently while preserving financial and emotional resources. Contact the Flanigan Law Group at 949-450-0042.