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For the calendar year 2022, you can give or donate $16k to as many people as you want without being required to file a gift tax return and without using any of your basic exclusion amount. If you’re married, since each of you can donate, you and your spouse can donate $32k to as many people as you want without gift tax consequences. And then, on top of that, when you pass away, you’ll have an estate tax basic exclusion amount of $12,060,000 to protect the rest of your estate from the 40% estate tax. Many experts did not anticipate that the estate tax exclusion amount would remain so high for 2022, but as of now, it’s $12.06m for estates of people who pass away in 2022. I, for one, certainly realize that this tax only impacts a very small percentage of people or families in America today, but when it does apply, the tax owed after the death of a family member can be staggering….(read more)
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Hello…
So you're talking about federal level estate taxes limits…
What about the state level?
Any taxes due if you give beyond the 16k or do you have to report the gift or if you received a gift on your state taxes?
Nobody should be charged for a gift. What? Are we going to start hitting Christmas and birthdays next?
What works on one state does not work on other.. California they keep change laws. Check your state laws!!
my close friend gifted me 100k so I can afford buying a home. 100k-16k=84k so 28% tax bracket. Does this mean I owe my friend not only $23,520 in gift tax money?
Paul, I just wanted to thank you for your great videos! I've been an estate planning attorney for 23 years, and yet I always find really valuable content in your discussions. Little tips and tricks, and also wonderful examples that are useful when meeting my own clients. You also have the gift of explaining these confusing concepts to non-lawyers, which is really special. Thanks for taking all the time to create this content. You're one of the rare positive reasons to keep watching YouTube and social media.
Our father passed in 2019, and we’ve encouraged our mom not to give us children more than the annual gift allowance. Listening to your videos; however, I see what a mistake this is. If we were to accept larger gifts but keep them invested, the compounding effect is significant. More over, mom’s minimum distribution and tax liability annually is greatly reduced. The overall effect for compounding the family estate in aggregate is best served with larger gifting. It’s the three year exclusion to the Lifetime Gift Exemption (LGE) that makes me nervous about pulling the trigger as we approach 2023. Surely Congress won’t let the LGE fall back down to $5mill, but if they do it seems this (2022) is the last year it’s safe to accept the risk of large gifting.
Can you share pros/cons of accepting large gifts and placing said gifts into a whole life policy?
In order to make a simple addendum to a Trust. Do you absolutely need to have an Estate Attorney in the same State in which you live? Thank you so much for the info. Have a nice day.
donor, donee, and do nut
Does Medicaid look at this gift as an asset transfer?
Does the $2 million estate tax include property also? For example, if I leave my son my home worth $1 million dollars and $400,000 cash, will he then have no tax liability? Thank you.
took 8 months to do my succession and still got it wrong costing me thousands
why
Taxes are a scam https://youtu.be/kjJgQpG8bOA
What if you end up in a nursing home in 2or 3 year and gifted all your money ?
I was under the impression you had to file a return on any gift over $10 but neither party would have to pay tax on it
What happens if you use your 12 million exemption through gifts prior to your death like you to give someone all of that in one year, but then you die at a time when the exclusion amount is lower than 12M? Do you then have to retroactively have to pay tax on that gift money?
thank you
I recently sold my home. My husband passed away less than 2 years ago. Am I allowed a $500,000 deduction on my taxes?
Ok, so a property transfer via quitclaim deed to a relative will trigger a Gift Tax filing. It seems that there will be no capital gains tax paid by grantor or grantee in this transaction ? Will the State re-assess the property to fair market value and trigger higher property taxes going forward ? Thanks 🙂
I’m curious to know if gifts can be made to charities as well as individuals. Thanks again!
Another VERY enlightening video. Thanks again!
I thought it was $16,000 in 2021 ???
If my mother inherited her parents house (which is paid off) and wants to sell the home and give /gift away the money to her kids (me my brother and my sister) . Can she do that, and it be counted as a gift?
Is it better for a parent to gift a property to a child directly or is it better for a parent to put the property in an LLC and then transfer the ownership of the LLC to the child?
You can give away up to 11.5 million without paying one cent in gift tax. Did he tell you that? Nope. It doesn't have to be 15, 000 a year.