Four Issues to Consider About Lifetime Gifts

Most of us are familiar with the quote that it is better to give than it is to receive. No place does this quote hold more true than the field of estate planning. By making gifting part of your estate plan, you can realize some substantial tax-savings advantages as well as other benefits. If you are debating making lifetime gifting part of your estate plan, this article reviews some important issues that you should consider. Current Lifetime Gift Exemption Amounts A person in 2021 can transfer $11.7 million during his or her lifetime without being subject to any estate or gift taxes. If the assets that you are passing on are greater than this amount, a 40% tax will be placed on the amount that surpasses this threshold. If your estate is subject to federal estate taxes, gifting assets while you are still alive is one of the best ways to reduce the taxes that are ultimately placed on your estate. Gifting Can Avoid Substantial Future Taxes By gifting assets from your estate today, you can sometimes avoid future appreciation and subsequently substantial future taxes in your estate. The taxes today that you might face today could be substantially less [...]