Lifetime Gifting Strategies
Another effective way of minimizing estate taxes and reducing the size of your gross estate is the utilization of lifetime gifting strategies. Some of the more common strategies include the following:

Lifetime Gifting Strategies:
 

  • Annual gift Exclusion Each person can gift $14,000 free of gift or estate tax in 2013. If you have three children and five grandchildren, in 2013 you could gift $14,000 to each or $112,000 in total each year. This is a fast and effective tax-free way to reduce an estate.
  • Gift Splitting with Consenting Spouse If you are married and filing jointly, you can do gift splitting with your spouse and gift $26,000 of jointly held property to each person. With three kids, and five grandkids at $28,000 each, this would reduce an estate by $224,000 each year.
  • College Tuition Payments – Qualified payments in any amount made directly to an educational institution for tuition have no dollar limit and qualify for gift and estate tax avoidance.
  • Spousal Gifts An unlimited amount of gifts, interests or property can be given to your spouse free of gift or estate tax.
  • Medical Expenses Payments in any amount made directly to a provider of medical care on behalf of any individual are not subject to estate or gift tax.


Marital Deduction and Bypass Trust Planning

Related Articles
  1. Financial Advisor

    How to Gift Your Way to Lower Estate Taxes

    Estate planning is not just for inheritance. High net-worth individuals, who plan properly, can gift their money and save on taxes.
  2. Insights

    Gift-Giving Etiquette

    Here's a look at how much you should spend and what you should give this holiday season.
  3. Personal Finance

    What The New Gift Tax Rules Will Mean

    The lifetime maximum for gift taxes is $5.12 million. However, it could drop to $1 million. Here's what that will mean.
  4. Personal Finance

    3 Best And Worst Gift Cards For 2012

    Here are the gift cards that offer the best deals and those that aren't worth your money.
  5. Personal Finance

    6 Tips For Getting The Most Out Of Gift Cards

    Gift cards are big business, amounting to an estimated $91 billion in annual retail spending. Get the most bang for your gift card buck.
  6. Personal Finance

    Will Your Gift Card Gift Go Unused?

    An unbelievable amount of money gets wasted in the form of non-redemption: nearly $5 billion a year. These tips will ensure that your gift card gift doesn't go to waste.
  7. Personal Finance

    How to Talk to Your Family About Christmas Gift Budgets

    Talking Christmas gift budgets with family members can be hard, but having the talk will help you stay on track financially.
  8. Personal Finance

    How To Get Gift Cards At A Discount

    Use these tips whether you're buying someone a gift or just want to score a discount at your favorite stores.
  9. Personal Finance

    Why Retailers Love Gift Cards

    Gift cards have many benefits for retailers compared to cash sales. We'll look at a few of them.
  10. Investing

    How Safe Are Discounted Gift Card Websites?

    Could you buy a gift card online and find out it's worthless? Here's how to protect yourself (and whether you need to).
Trading Center