Estate Planning Update:
Just a quick update that IRS recently announced new gift & estate tax exclusion amounts for 2015, plus a whole bunch of tips for how to approach gifting over the year end and beyond.
2015 Annual Exclusion Amount To Remain At $14,000
The annual exclusion is the amount you may give to any individual (and some trusts) without incurring gift tax. This amount renews every year, and can be doubled if spouses elect to “split” gifts. So, for example, you and your spouse could give a total of $56,000 – gift tax free – to your child and her spouse, because each of you can give $14,000 to each of them (you give $14,000 to child and $14,000 to child’s spouse, and your spouse gives the same amounts to them: $14K X 4 = $56K). Note that you do not need to write 4 checks. You and your spouse can each write $28,000 checks and then elect to split gifts on your 2014 gift tax return.