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How much can I give every year to my children without having to file a gift tax return?

A: Currently the annual gift tax exclusion (for 2011 and now 2012) is $13,000.00 oer person.  So, you can give that amount to each of your children.  But wait.  There's more!

If you're married you can give even more - see below

A husband and wife can therefore gift $26,000.00 per child and, if they wish, to each grandchild.  This gift is not tax deductible to you but is also not taxable for income tax purposes to the recipient. 

Whether your gift is to a child or grandchild, if your gift is at or below this amount, no return is required.

For gifts above that amount, a gift tax return may be required but each person also has a $1,000,000.00 million dollar lifetime exemption before they must begin to pay tax. 

You can also make gifts to people other than family members too.

And, to make matters more complicated, you can also use your non renewable federal estate tax
exemption of up to $5 million per individual donor.  In short, if you want to help a child to
buy a house, form a business, or do anything else, you and your attorney should be able to find a
perfect strategy.

Attorney David M. Frees III whose practice involves trusts, estates, wills, and estate and asset protection planning, has just published a new (and free) guide for executors of wills probated in Pennsylvania.   The Executor Report: The Ten Most Common Mistakes That Executors Make and How To Avoid Them.  This is a guide for executors to prevent personal liability and a guide for you if you're planning your estate and need to decide who is the best executor.  David Frees and Unruh, Turner, Burke and Frees have offices located conveniently in Malvern, Phoenixville, and WestChester Pennsylvania   If you are an executor, or if you need to update an old will, trust, or estate plan, or if you need to do one for the first time, call 610-933-8069 and ask for one of David's assistants for an appointment with David or one of his team.  Please tell us that you're calling from our estate planners web site and you will receive a bonus when you come for an appointment or you have a telephone conference with David.

For more info from David M. Frees, III

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Free Consumer Reports
on Estate Planning:

The Ten Most Common Mistakes Executors Make...and How to Avoid Them

Enhanced Estate Plannning: What You Need to Know About Hiring An Attorney & Creating A Plan That Works

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