For many New Jersey residents, gift taxes are something that is of interest as a tool in their estate planning wardrobe. Gifts to a loved one can be a good way to transfer some assets while a person is alive and reduce the total amount of the estate.
One of the most important things to know about giving a gift to a loved one is the annual exclusion of $14,000 per person. Therefore, a person can make a gift of up to $14,000 to a beneficiary without having to pay taxes. These gifts do count towards the lifetime amount a person can give away, which is currently at $5.45 million. Giving money away while you’re still alive has many benefits including reducing the total amount of an estate and gives the donor good feelings about their generosity. You can make this gift every year up to the exclusion amount without having to worry about taxes. The gift can be in the form of money, property, or other assets.
A legal professional who is skilled in estate planning is a good resource for a family who is interested in learning more about the gift tax exclusion. They understand how important it is to gift money to beneficiaries and share these gifts with them. An attorney understands that gift tax issues can be complicated legal matters and they are also skilled in New Jersey estate tax law. They can offer their clients various estate planning techniques to minimize estate taxes and make sure their heirs receive as much of their assets as possible.
The gift tax is something that many New Jersey residents may be interested in learning more about. It is a good way to reduce the total value of an estate and gift money while a person is still alive.
Source: irs.gov, “Frequently asked questions on gift taxes“, accessed on Sept. 12, 2017