Annual Gifts

Each year, you can make gifts up to the annual limit per individual to as many recipients as you wish, free of gift and income taxes. The limit changes annually, so to find this year’s limit, please see the list provided on our website under Resources titled “Annual Updated Tax Numbers” for this and other limits, thresholds, and rates that change annually. If the gifts are made with jointly owned property with your spouse, the limit can be doubled. You can also make larger gifts by using part of the lifetime federal gift allowance. Although this will reduce the amount your estate will have available, it can pay off if you expect the gifts to appreciate before you die. If you believe you may have an estate tax liability, consider contacting us to prepare an analysis for you. One additional note: If you are making education gifts for your children or grandchildren, you have two additional choices. First, you can make direct payments for tuition at any level of education, in any amount - gift tax free. The only requirement is that the tuition payments must be made directly to the school. So, if you have young grandchildren in private school, consider paying their tuition. Second, you can accelerate 5 years' worth of gifts by gifting to a 529 plan.