Many people are unaware that the federal government can tax gifts. If you do not donate money to charity or donate to non-taxable gifts, you may be required to pay taxes on those gifts if they accumulate more than $13,000. There are some exclusions to the taxable gifts including:
- Gifts that are less than the maximum exclusion
- Medical care or tuition related gifts
- Spousal gifts
- Political gifts
Part of the estate planning process will discuss estate gift and tax planning. There are certain options that do exist that can reduce the risk of breaching the annual exclusion. Contact our office today to discuss estate and gift tax planning.