Annual Gift Tax Exclusion

Annual Gift Tax Exclusion

The value of the gift(s) an individual or married couple may give in a year without being subject to the gift tax. The amount of the annual gift tax exclusion varies from year to year but is always over $10,000. In general, payments for medical, educational, and political purposes fall under the annual gift tax exclusion no matter how much they are, as do gifts to one's spouse.
References in periodicals archive ?
The annual gift tax exclusion remains $14,000 in 2016.
On a motion for summary judgment, the Tax Court held that the Mikels were entitled to the annual gift tax exclusion for their transfers of property to the trust.
After an ILIT has been created, taxpayers run inn) situations where the Funds required to pay the insurance premiums significantly exceed their annual gift tax exclusion.
Thankfully, his wife was still insurable at a standard rate, allowing them to dedicate the annual gift tax exclusion into a life insurance product.
In addition, the Tax Relief Act of 2010 maintains the current annual gift tax exclusion of $13,000 per donee, which can also still be used to avoid federal gift tax liability on premium payments.
For example, Prisciotta said, a married couple with two children could use the annual gift tax exclusion of $13,000 per person, or $52,000 a year, to fund a life policy--he often uses variable universal life--inside an irrevocable family trust to leverage a number of tax benefits.
One option is to take advantage of the annual gift tax exclusion amount (currently $13,000 per individual or $26,000 per couple) and give away beneficial interests (CBIs) to the children each year, thereby slowly reducing the value of the grantor's taxable estate.
This arrangement allows parents to retain full control over the FLP assets, while taking full advantage of the annual gift tax exclusion by slowly transferring shares in the partnership and ultimately reducing the wealth that is eventually included in the parents' estates at death.
Make sure to take advantage of the annual gift tax exclusion before the year is over.
That portion ($200) of the settlor's annual gift tax exclusion may be used to neutralize the gift tax created by the gift of the economic benefit cost.
However, such an approach does not permit the settlor to take maximum advantage of the annual gift tax exclusion.

Full browser ?