Many people find that the best way to handle personal assets is to make those arrangements during a lifetime…while they are still alive.
When you give a gift while you are living, the gift will be subject to gift tax laws, however there are certain tax exemptions apply.
A tax attorney can be of assistance to inform you if your gift falls within the tax-exempt rules.
Gifts given between spouses are always tax free. However, if you would like to transfer gifts to your children or other people, gift tax laws will apply.
Every person is entitled to a lifetime gift tax exemption, which is set at 1,000,000 dollars. If during any specific time, you give someone a gift that is greater than the monthly allotted amount, the amount will be applied to your lifetime exemption amount.
Since charitable donations are tax free, there are many ways to give gifts while you are alive and avoid paying gift taxes.
By working with a qualified financial planner as well as an experienced attorney, you can create a strategy that works best for your needs, while avoiding paying taxes.