Many people wait until they die to leave assets and cash to their loved ones but you can start giving to your loved ones now and enjoy actually giving them their gifts. Each year, you can give several thousand dollars to as many people as you wish and this will reduce your eventual taxable estate.
The annual gift tax exclusion is the amount of cash/asset value you can give without paying a tax on it. Currently, the annual gift exclusion amount is $13,000 per person. If a person gives $13,000 a year to each of his or her three children and seven grandchildren, he or she would reduce his or her estate by $130,000 (10 x $13,000) a year OR $260,000 if the donor and spouse elected to gift split.
Getting Legal Help
To learn more about estate planning and what you need to do to protect your assets and your loved ones, contact experienced estate planning attorney Elga Goodman. Call us today at 973-841-5111.