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The Gift of a Lifetime!
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Transfers of wealth during a lifetime are gifts.

  • Gifts are never taxable to the recipient regardless of how much they receive
  •  Spouses can make unlimited gifts to one another
  • $14,000 per person per calendar year to unlimited recipients without filing a Gift Tax Return 
  • If any gift exceeds $14,000, no taxes are due but a Gift Tax Return must be filed by the donor to track this activity
  • Amounts in excess of the $14,000 annual limit reduce your overall $5.34 million lifetime Gift and Estate Tax exclusion
  • Tuition or medical bills paid directly do not count towards the $14,000 or $5.34 million lifetime Gift or Estate Tax exclusion

NOTE: A word about 529 plans. These unique college savings tools permit advanced 5 year gifting per donor and per recipient. The "gift” is pro-rated over a 5 year period. A couple can fund a 529 plan with $140,000 ($70,000 each), but $14,000 will leave each of their taxable estates over 5 years. Additional gifts over the next four years would require the filing of a gift tax return. Although no longer in their taxable estate, the donor retains ownership and can tap these assets if necessary; paying a 10% penalty only on growth. 529 plans are good college savings plans, but they are great estate planning tools!


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