Gifting

Gifting is an estate-planning tool that helps to reduce the value of your taxable estate and reduce probate costs and legal fees upon your death.

As of 2009, you can gift up to $13,000 per person, per year without being subject to gift taxes.  This annual gift can be given to family members, friends, or anyone else as long as the amount gifted is less than $13,000 per person.  Any gift greater than that amount may be subject to gift taxes and will require you to file a gift tax return.


FAQ

As a gift to my son, I paid his college tuition. Does this count towards the $13,000?

No.  Any money paid directly for someone’s school expenses or medical bills is exempt from federal gift taxes. You can still give your son an additional $13,000.

I want to make a gift to a charity. Is that limited as well?

There is no limit on gifts to non-exempt charities. Gifts to non-exempt charities are exempt from federal gift taxes.