Annual Gift Tax Exclusion Reduction Proposal
President Obama Has Filed His FY2015 Budget Proposal.
This budget includes a significant change to the annual gift exclusion per donor and donee to a yearly cap of $50,000 TOTAL annual gift exclusion per donor. Current law allows $14,000 annual gift exclusion per donor to a specific donee (person receiving a gift). This proposal would cap the amount a donor can give. This would change current strategies of annual gifting to children and grandchildren, which basically multiplies the $14,000 exclusion by the number of donees. When a married couple is the donor, the annual exclusion is $28,000 per donee.
We will continue to watch as this proposal develops. It is likely that within the next two years we will see a significant tax bill passed into law that will alter our estate planning strategies.
President Obama Has Filed His FY2015 Budget Proposal.
This budget includes a significant change to the annual gift exclusion per donor and donee to a yearly cap of $50,000 TOTAL annual gift exclusion per donor. Current law allows $14,000 annual gift exclusion per donor to a specific donee (person receiving a gift). This proposal would cap the amount a donor can give. This would change current strategies of annual gifting to children and grandchildren, which basically multiplies the $14,000 exclusion by the number of donees. When a married couple is the donor, the annual exclusion is $28,000 per donee.
We will continue to watch as this proposal develops. It is likely that within the next two years we will see a significant tax bill passed into law that will alter our estate planning strategies.
