If you’re not sure what to get people on your Christmas list and as the deadline gets closer, you might be interested in taking advantage of your gift tax exemption. For example, in 2021, you can make a gift of up to $15,000 cash per person during the year without triggering the need for a gift tax return. Your spouse is also eligible to give up to $15,000 to the same individual, meaning that you could make a joint gift of up to $30,000 per person.
If you could help avoid or reduce your estate taxes by leveraging the strategy with the support of an estate planning lawyer. Gifting cash throughout your lifetime is just one way to take advantage of your estate planning strategies and to determine that you have incorporated the most relevant strategies on an ongoing basis.
As your circumstances change, you might wish to consult with your lawyer about adapting your estate planning strategies and aligning them with any major changes in your life such as a divorce, marriage or the birth or adoption of a child or grandchild. Your estate planning lawyer can be there to guide] you as the circumstances in your life change or as you have further questions that should be considered.
When done properly, gifting money on a regular basis can help you support your loved ones while also decreasing the size of any taxable estate. This is especially helpful if you have a large family and would like to provide ongoing gifts to your children now.
To ensure you’re using all this to your advantage, set aside time to speak with an experience estate planning lawyer in California about how regular gifting complements your existing estate strategies.