Lifetime gifting strategies serve an important role in estate planning, particularly when it comes to wealth transfer tax planning. Marital deduction planning and the creation of various types of trusts aren't the only methods of excluding assets from an estate for estate tax purposes; the more a person gives away during their lifetime, the smaller the gross estate will be at their death.

Individual gifts made during a person's lifetime will escape taxation as long as they are made in amounts below the annual exclusion amount ($14,000 in 2013). Some gifts, such as those made between U.S. citizen spouses, to a charity or paid directly towards tuition or medical expenses, are excluded from the federal gift tax altogether, regardless of their amount. Because making gifts throughout someone's lifetime will both help achieve wealth transfer goals and minimize the gross estate, it is important that the exposure to gift tax is recognized and planned for appropriately.





Gifting Strategies

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. Financial Advisor

    A Quick Guide to High-Net-Worth Estate Planning

    A quick estate planning guide for high-net-worth individuals to help minimize taxes and costs, protect assets and plan for care.
  3. Retirement

    How Much Will You Owe on Your Inheritance?

    Estate planning can be unpleasant, but in order to get the full benefit of what you've inherited, it’s important to be prepared for the related taxes.
  4. 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.
  5. Investing

    Top Websites For Discounted Gift Cards

    Gift cards can cost less when you buy them through a discount website. Just do the math before you cough up the cash.
  6. Retirement

    Gifting Your Retirement Assets To Charity

    There are several things to consider when it comes to this type of charitable giving. Make sure you're well informed.
  7. Personal Finance

    8 States With Estate Taxes

    Understand the difference between the federal estate tax and state-specific estate taxes. Learn about some of the worst states with estate taxes.
  8. Financial Advisor

    Surprise! These Items are Taxable

    These are 10 surprising taxable items you need to be aware of if you don't want the IRS knocking on your door.
  9. Personal Finance

    7 Sources Of Nontaxable Income

    All income in the United States is taxable, unless a provision specifically excludes it. Here are seven of those exceptions.
  10. Financial Advisor

    Estate Planning and Elderly and Passed Clients

    By keeping up with new estate tax rules, financial advisors can help elderly clients save big on tax costs.
Trading Center