California Estate Planning Lawyer Kavesh, Minor & Otis

Here is some background on what is known as the “annual gift-tax exclusion.” You can give away as much as $14,000 this year to anyone you want-or to each of as many people as you wish-without any tax considerations or burdensome paperwork. The recipient can be anyone you choose.

Many taxpayers are confused when it comes to the Annual Gift Exclusion. You know, the $14,000 you can gift each year without triggering gift taxes. One of the biggest sources of confusion is the number of such gifts you can make.

A recent Q&A in The Wall Street Journal titled [spoiler alert] “A Tax-Free Gift Can Go to Anyone” takes this question head on.

So, to whom may you gift assets within the exclusion amount? Answer: anyone. That is right, it makes absolutely no difference whether the objects of your generosity are near or far, family, familiar, or utter strangers. Now, you might not be interested in giving much of anything to complete strangers – charity aside – but the point is that gifting is a malleable tool, and something you may work into a much grander plan.

The name of the game is understanding the annual gift tax exclusion and your lifetime gift tax exemption.

Every individual can give up to their annual gift tax exclusion to any other individual, and as many of them as they care to, all tax free. To give more than the annual amount, however, will count against your lifetime gift tax exclusion which, in turn, will reduce your estate tax exemption available at death.

Like most areas of tax law, the time and money spent consulting with qualified legal counsel now prior to embarking on a gifting strategy will be time and money well spent later on.

Do You Need To Speak With An Attorney About Estate Planning?

If you need to speak with an experienced estate planning lawyer please contact us online or call us directly at 800.756.5596 to first register for one of our free, informative seminars. Your attendance will qualify you for a special discount for our estate planning services should you decide to make a free appointment at the conclusion of the seminar and choose to proceed with us. We proudly serve clients throughout California with offices in Torrance, Newport Beach, Orange, Woodland Hills and Pasadena.

Philip J. Kavesh
Nationally recognized attorney helping clients with customized estate planning guidance for over 40 years.
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