https://www.paestateplanners.com/ Gifting assets each year to your children and grandchildren can help them out and can help you reduce your estate. However, before you gift any assets, you need to learn how much you can give to an individual without needing to file a federal gift tax return.
Laws change from year to year, and the amount of assets a single person can give versus a married couple can give also varies. When the gift amount exceeds the annual gift tax exclusion, it triggers the need to file a gift tax return (also known as IRS form 709). However, you might not have to pay a gift tax due to a significant lifetime estate and gift tax exemption. Gifts made during your lifetime with a total value less than your exemption will transfer with no gift tax. Even if you don’t have to pay a gift tax, you still need to file form 709 with the IRS by April 15th of the following year.
Because gifting assets and knowing whether you do or don’t have to pay a gift tax can be confusing, we are here to answer your questions and help. To speak with a knowledgeable lawyer at Unruh, Turner, Burke & Frees contact us at 610.933.8069 or online at https://www.paestateplanners.com/contact.cfm.