The Annual Exclusion Amount exempt from gift taxes is currently $14,000 . \u00a0That means while you are alive you can give money or property up to $14,000 in value to as many people as you want during each calendar year \u00a0without paying any gift tax. \u00a0You don’t even have to file a gift tax return. \u00a0The only stipulation is the recipient gets the gift now and has the right to take the gift and do with it as they please. \u00a0You can gift to anyone. \u00a0They do not have to be a relative. \u00a0Tax free to you and the person\/persons you gift. \u00a0And, no paperwork.<\/p>\n
Over the years many of us have accumulated “valuables”, \u00a0Cars, \u00a0Artworks, Jewelry, Silver, Antiques, \u00a0and various other Collections. \u00a0If your intention is to “will” these treasures (or money) to certain individuals these bequests more than likely will have to go through probate and there could be estate taxes as well as inheritance taxes to the beneficiaries. \u00a0 Also there will be a delay before these assets can be transfer to your beneficiaries. \u00a0Inventory has to be taken, debt and taxes must be paid before beneficiaries received their inheritance.<\/p>\n
Giving away money or property while you are alive helps lower your probate costs as well as estate taxes. \u00a0The higher the monetary values of the property that goes through probate the higher the expenses and possible estate taxes. \u00a0If the beneficiary is not a close relative they may have to pay an inheritance tax.<\/p>\n
For example Bud has a valuable guitar his good friend loves. \u00a0Bud wants his good friend to have this guitar at some point. \u00a0The market value of the guitar is $12,000. \u00a0 If Bud gifts the guitar collection to his friend while he (Bud) is alive there is no tax to pay and no paperwork to generate. If Bud wills the guitar there could be estate taxes as well as inheritance tax. \u00a0Currently in Maryland (10% inheritance tax) where Bud lives his friend would have to pay a $1200 inheritance tax on the guitar. Donna has a jewelry collection value at $100,000. \u00a0She can gift 10 different people $10,000 worth of jewelry\u00a0in one year. No taxes. No paperwork. \u00a0If Donna wills the jewelry to her 10 girlfriends the jewelry goes through probate where there may be estate taxes on the jewelry and each of the 10 girlfriends will have to pay $1000 each in inheritance tax.<\/p>\n
In conclusion, \u00a0we all know we can’t take it with us. \u00a0Think about gifting it while you are alive and see the joy your gift brings.<\/p>\n","protected":false},"excerpt":{"rendered":"
The Annual Exclusion Amount exempt from gift taxes is currently $14,000 . \u00a0That means while you are alive you can give money or property up to $14,000 in value to as many people as you want during each calendar year \u00a0without paying any gift tax. \u00a0You don’t even have to file a gift tax return. … Continue reading Gift It Or Will It<\/span><\/a><\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-61","post","type-post","status-publish","format-standard","hentry","category-uncategorized"],"_links":{"self":[{"href":"https:\/\/myepitchat.com\/blog\/wp-json\/wp\/v2\/posts\/61","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/myepitchat.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/myepitchat.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/myepitchat.com\/blog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/myepitchat.com\/blog\/wp-json\/wp\/v2\/comments?post=61"}],"version-history":[{"count":4,"href":"https:\/\/myepitchat.com\/blog\/wp-json\/wp\/v2\/posts\/61\/revisions"}],"predecessor-version":[{"id":89,"href":"https:\/\/myepitchat.com\/blog\/wp-json\/wp\/v2\/posts\/61\/revisions\/89"}],"wp:attachment":[{"href":"https:\/\/myepitchat.com\/blog\/wp-json\/wp\/v2\/media?parent=61"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/myepitchat.com\/blog\/wp-json\/wp\/v2\/categories?post=61"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/myepitchat.com\/blog\/wp-json\/wp\/v2\/tags?post=61"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}