If you would like to speak with our probate section, we have an attorney on staff to assist you. The consultation is free.
HOW TO GIVE AWAY MORE THAN $13,000 IN A YEAR AS A GIFT TO ANYONE WITHOUT INCURRING A FEDERAL GIFT TAX
The normal gift tax exclusion per year per donee is $13,000. There is no tax consequence no matter how many people you give the money or gift to whether cash or in some other form such as land, etc. If you have two children and two grandchildren by giving each of them $13,000 in some form your total nontaxable gift is $52,000. The gifts are not tax deductible unless given to a charitable organization as defined by the Internal Revenue Service.
HOWEVER, you can also pay unlimited medical and tuition expenses for the recipient donee AS LONG AS THE PAYMENTS ARE MADE DIRECTLY TO THE PROVIDER OF THE SERVICE. E.G. the doctor, the hospital, the clinic, the college or private school. These are not taxable gifts and are not considered part of the $13,000 limitation. So if tuition for your grandchild is $30,000 and you give the money directly to the school, it does not count toward the $14,000 limit on gifts.
Plan your gifts wisely and your children and grandchildren can receive the benefit of your bounty without you feeling the burden of the IRS.
For more information on planning how to modify or create your trusts, wills and gifts, contact:
Sean Thordsen, Esq. at 888-667-8529
A LITTLE KNOWLEDGE ABOUT ESTATE TAXES
The 2010 Tax Relief Act revived the estate tax for decedents dying after December 31, 2009. The maximum estate tax rate is 35%, with an exclusion amount of $5,000,000. THIS IS A TEMPORARY ACT and is scheduled to end on December 31, 2012.
Plan your estate now with a will, trust and or both BUT BE SURE TO REVIEW IT NOW so you can make plans for changes BEFORE DECEMBER 31, 2012.
A SIMPLE NON-EXPENSIVE LIVING TRUST CAN SAVE YOU A LOT OF GRIEF. CONTACT SEAN THORDSEN, ESQ FOR A FREE CONSULTATION AT 888-667-8529