There are significant federal gift tax benefits to married couples. Married couples can split their gift tax exemption and can give up to $26,000.00 a year to each individual. Individuals who are not married however can only give half that amount each year.
Unmarried Couples and Same Sex Couples Have No Federal Tax Benefits
Married spouses can also give to each other limitless amounts each year without any tax or penalty. While that seems to make perfect sense, couples who choose not to marry, or same-sex couples whom the federal law does not recognize as married couples may not give limitless gifts to each other. One partner can only give up to $13,000.00 to the other partner a year and remain under the federal annual gift tax exemption. For example if one partner gives the other partner a $25,000.00 car for his birthday, only $13,000.00 of the value of the car will be excluded from gift tax.
Getting Legal Help
To understand your rights under current federal and state law, consult an experienced Estate Planning Attorney. Experienced Attorney Elga Goodman can help you create a strategic plan to preserve your assets and protect your loved ones. Making a plan which incorporates giving to loved ones now, as well as in the future, is essential to creating a smart estate plan. Call us today at 973-841-5111 to learn more.