You can give away as much as $13,000 during the year to anyone you
want—and to as many people as you choose—without any tax considerations. These
gifts can be to family members, friends or even complete strangers.
Gifts are thought to be simple. But
if you are serious about making savvy wealth transfers to loved ones, then the
annual gift tax exclusion is an important tool.
For some straight answers on
gifts and gift taxes, The Wall Street
Journal recently examined the “Basics of the Gift-Tax Exclusion.”
While the original article
doesn’t offer exhaustive advice, it provides practical pointers you can use.
After all, anything related to tax planning can have hidden complexities.
Once you conquer the basics and
have a long-range plan in play, a gifting program can be one of the most
powerful, reliable, and comparatively simple wealth transfer strategies.
Contact Meier Law Firm to discuss how you can implement gifting into your estate planning.
Reference: The Wall
Street Journal (August 4, 2012) “Basics of the Gift-Tax Exclusion.”