The IRS defines the gift tax as “a tax on the transfer of property by one individual to another while receiving nothing, or less than full value, in return. The tax applies whether the donor intends the transfer to be a gift or not.” Currently, each person can give $13,000 a year to any other person year after year without being subject to the gift tax. However, any amount over the $13,000 per year limit is subject to the 50% Federal Government gift tax, limited by the personal, medical, and educational exemptions.
To avoid or mitigate this tax, the experienced attorneys at BTJD help clients utilize the annual gift exclusion of $13,000 each year, understand the potential significance of gifting fractional interests in their property, and structure their life insurance policy. Additionally, we carefully evaluate the client’s estate and suggest strategies to meet those goals. Regardless of your financial goals and current situation, the experienced attorneys at BTJD are ready to provide assistance.