USING GIFTS TO REDUCE CURRENT INCOME AS WELL AS ESTATE TAXES

With few exceptions, the value of a taxpayer's estate includes the value of all of the assets in the taxpayer's name.

These items include the fair market value of homes, businesses, real estate investments, and stocks. In addition, annuities, life insurance policy valuations, IRAs, Keoghs, and/or 401(k)s owned by the taxpayer are included.

Yearly dispersal of a taxpayer's estate through gifts will ensure the maximum value of an estate will be passed on to the beneficiaries.

Tax-free gifts can be used to reduce estate taxes, or just to limit current tax liability. Taxpayers can give away as much as $11,000 of an asset's value each year without paying any gift taxes, or $22,000 if a spouse contributes in the gift.



(c) Copyright 1995-2015 by TaxLogic