Year End Gifting
Each person may gift to any individual $13,000 in 2010 without a gift tax (married couples may gift $26,000 to an individual). Any gifts which exceed the $13,000 in 2010 are subject to a thirty-five percent gift tax (35%) or must be deducted from the lifetime gift exemption of $1,000,000 and a gift tax return must be filed.
Individuals with large estates…those subject to estate taxes should consider making gifts to children and grandchildren before the end of the year. The estate tax exemption in 2011 is scheduled to revert to $1,000,000. per person with an estate tax rate of fifty-five percent (55%). If you gift the $13,000. this year, then your family will receive the entire $13,000 which will be more than double the value at your death after taxes are paid.
The law prohibits giving to minors, those under the age of eighteen; however, gifts to minors can be made to 529 plans for education or an irrevocable trust for his or her benefit. Please contact our office if you are interested in year-end gifting.
