Sitting on $11 million? Give it away to save on estate taxes

  If the holiday spirit is encouraging you to gift millions of dollars to family members, it’s time to start sharing the wealth. The Tax Cuts and Jobs Act increased the gift and estate tax exemption — also known as the basic exclusion amount — to $11.18 million per person in 2018, which is more than double the amount under the old law. That means any individual can transfer up to $11.18 million, either as gifts during their lifetime or … Continued

How the new tax law could impact donors’ philanthropic strategies – Smart Business Magazine

  The 2017 Tax Act, passed into law in December, is one of the most complicated new laws in tax history. In addition to changes that affect individuals and businesses, there are also noteworthy changes that will impact charitable giving. Smart Business spoke with Karen S. Cohen, CPA, vice president and trust officer at Home Savings Bank, about how the new law is expected to impact charitable giving. How is the act’s passage affecting charitable giving and planning? In 2018, … Continued

MAKING CENTS: Gifts – beware unintended consequences – News – Dover Post – Dover, DE

  Many taxpayers want to make gifts of assets to their children or grandchildren while they are alive. Seeing their hard work benefit someone they love is extremely gratifying for many. Unfortunately, most taxpayers are relatively unsophisticated in both income and estate tax laws, and the unintended consequences of gifts done improperly could cost your beneficiaries dearly. To make matters worse, do not assume your attorney is aware of these laws either. We have witnessed many gifts promulgated by a … Continued

IRS Raises Limit On Tax-Free Lifetime Gifts – Forbes

  As many estate planners anticipated, the Internal Revenue Service has raised the limit on tax-free transfers during life or at death. Starting in 2014 that amount, known as the basic exclusion, will go up to $5.34 million per person, from $5.25 million this year. Today’s announcement, in Revenue Procedure 2013-35, indicates that there will be no change in the annual exclusion, which allows you to give $14,000 in cash or other assets each year to each of as many … Continued

To Give or Not to Give, Up to $5.12 Million – NYTimes.com

TIME IS RUNNING OUT TIME may — or may not — be running out for one of the biggest tax breaks for wealthy Americans: the chance to give up to $5.12 million to heirs tax-free and then pay a comparatively low 35 percent rate on any gift above that. The break is scheduled to expire in six months, but no one will hazard a guess about its fate because it is just one of many tax and spending measures expiring … Continued