Do you want to give your children or grandchildren some gifts each year to
reduce your estate, help them with a house or educational expenses but
don't want to pay taxes?
For information about 2012 and earlier years read on....
2012 Is an important Year for gifting.
Currently the annual gift tax exclusion (for 2012) is $13,000.00 per 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.
And, if you're paying tuition bills directly you can give even more - see below
If you're going to give the $13,000.00 and pay for tuition, you can but you must pay
the schoold directly.
Whether your gift is to a child or grandchild, if your gift is at or
below this $13,000.00 amount, no gift tax return is required.
For gifts above that amount, a gift tax return may be required but each person also has a
$5,000,000.00 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
For more information on gifting to children and grandchildren see our videos on this page or
if you live in Pennsylvania call 610-933-8069 for a telephone consultation on gifting.
To receive your complimentray consultation mention attorney David M Frees.