Business Services Industry
The power of gifting.
Tax Adviser, The, July, 2007 by Tierney, Thomas G.
Prospects for repeal of the estate tax became less likely after the November 2006 elections; as a result, gifting continues to be a powerful estate planning tool. Maximizing use of the annual gift tax exclusion, using the $1 million lifetime gift tax exemption and gift-splitting by married couples, can help reduce the size of a taxable estate. The younger the individual using these tools, the better the results.
Current Exclusion/Exemption Amounts
The current annual gift tax exclusion is $12,000 per donee, under Sec. 2503(b)(1). This amount is indexed for inflation under Sec. 2503(b)(2) and could rise in the future. Any annual gift tax exclusion not used in a calendar year is lost; there is no carryover.
The current lifetime gift tax exemption...
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