Annual Gifting: It’s Never Too Early To Start Thinking About Gifting

Gift planning can be an important component of estate planning and, if the right techniques are executed, can reduce your overall tax burden. With this in mind, it is never too early to be thinking about gifting to your children and/or grandchildren. The annual gift tax exclusion is the most commonly used method for tax-free giving. For 2018, the annual exclusion is $15,000 per child. This is applied on a per-donee basis and can be leveraged by making gifts to multiple donees. For example, if an individual makes $15,000 gifts to 5 donees, he or she may then exclude $75,000 from gift and estate tax.

If you would like to discuss your gifting options for this year, please contact us to further discuss your particular objectives.

** The information contained in this communication is not intended to constitute legal, accounting or tax advice.