The Season Of Giving & Gift Tax?!
Though we’ve just survived another season of giving filled with carols in the air and presents under the tree, it’s not too late to think about gifts. In fact, certain types of gifting can be useful as a powerful estate planning tool. Gift-giving and estate planning go together like eggnog and sugar cookies.
What Does Gifting Have To Do With Estate Planning & What Is Gift Tax?
Most wills include bequests, or gifts, to heirs. If you have family china, for example, you might bequeath it to the person you feel will take care of it for future generations.
- Annual Gift Tax. Giving gifts reduces the value of your estate, which can be particularly helpful with high net worth estates. In 2017, you could give up to $14,000 to as many people as you want without affecting your lifetime exemption. Married couples can each give the limit. Note that the person giving the gift pays any gift taxes due on the gift.
- Charitable Gifting. When you donate to a charitable organization, you’re helping the charity, the community, and your estate. Donations can take many forms. In addition to cash, you can donate possessions. Even expenses related to the time you spend volunteering may be tax deductible. And charitable remainder trusts allow you to continue to receive income from assets that will be given to a charity upon your death.
- Discount Gifting. Transferring assets to trusts – including grantor trusts, family entities, grantor trusts, personal residence trusts, generation skipping trusts – is another form of gift giving. Higher value assets may be divided into multiple parts, which discounts each part and may reduce gift tax liability.
Another benefit of gift giving is that you get to enjoy seeing the recipient enjoy your gift!
Call For More Information
You can include gift-giving as part of your comprehensive estate plan. The attorneys at Keystone Law Firm look forward to helping you make thoughtful decisions about your estate planning. Call us at (480) 418-8448 to set up an appointment. We offer services for clients throughout Arizona, including Chandler, Gilbert, Sun Lakes, Tempe, Phoenix, Mesa, Scottsdale, and Apache Junction.
Though we’ve just survived another season of giving filled with carols in the air and presents under the tree, it’s not too late to think about gifts. In fact, certain types of gifting can be useful as a powerful estate planning tool. Gift-giving and estate planning go together like eggnog and sugar cookies.
What Does Gifting Have To Do With Estate Planning & What Is Gift Tax?
Most wills include bequests, or gifts, to heirs. If you have family china, for example, you might bequeath it to the person you feel will take care of it for future generations.
- Annual Gift Tax. Giving gifts reduces the value of your estate, which can be particularly helpful with high net worth estates. In 2017, you could give up to $14,000 to as many people as you want without affecting your lifetime exemption. Married couples can each give the limit. Note that the person giving the gift pays any gift taxes due on the gift.
- Charitable Gifting. When you donate to a charitable organization, you’re helping the charity, the community, and your estate. Donations can take many forms. In addition to cash, you can donate possessions. Even expenses related to the time you spend volunteering may be tax deductible. And charitable remainder trusts allow you to continue to receive income from assets that will be given to a charity upon your death.
- Discount Gifting. Transferring assets to trusts – including grantor trusts, family entities, grantor trusts, personal residence trusts, generation skipping trusts – is another form of gift giving. Higher value assets may be divided into multiple parts, which discounts each part and may reduce gift tax liability.
Another benefit of gift giving is that you get to enjoy seeing the recipient enjoy your gift!
Call For More Information
You can include gift-giving as part of your comprehensive estate plan. The attorneys at Keystone Law Firm look forward to helping you make thoughtful decisions about your estate planning. Call us at (480) 418-8448 to set up an appointment. We offer services for clients throughout Arizona, including Chandler, Gilbert, Sun Lakes, Tempe, Phoenix, Mesa, Scottsdale, and Apache Junction.
