Tax free annual gifting

Transcription:

In general, most transfers that you make to another person during lifetime, are subject to a Federal Gift Tax. There is an exception that you make between spouses and an exception for transfers to charity; but beyond that, most transfers are considered gifts and subject to gift tax. Each year, you can transfer up to $13,000 to as many individuals as you want, without having to pay a gift tax, and without even being subject to the gift tax rules. That means, for example, a husband and wife who have three children, can transfer up to $13,000 to each of those children. So, the husband and wife together, can transfer a total of $78,000 in one year, without paying any gift tax. There is another exclusion that is a little bit different than the spousal contribution and the charitable contribution, and that is for what is called, qualified expenses. This is very specific. It only applies to tuition expenses and medical expenses paid to a school or a healthcare provider, on behalf of somebody else. For example, if you have grandparents, who want to pay for a grandchild's education; that grandparent can pay to the school directly for the child's tuition expenses and there is no cap on what they can pay. It can only be for tuition expenses. For example, room and board doesn't count. Books don't count. It can only be for tuition or medical expenses.

Video Categories: ALL PARENTS, Financial Planning and Budgeting, Guardianship, Wills and Trusts

Estate & Tax Attorney Stefanie Lipson shares advice on how to avoid taxes on gifting assets annually

Transcript

Expert Bio

Stefanie Lipson

Estate & Tax Attorney

Stefanie J. Lipson is an attorney in the Family Wealth Planning Group of Greenberg, Glusker, Fields, Claman, & Machtinger, LLP. Stefanie’s practice focuses on comprehensive estate planning for high net worth individuals, family business succession planning, probate and trust administration and the law of tax exempt organizations. Stefanie counsels her clients with a holistic approach to wealth transfer solutions, structuring plans to meet a family’s individual needs while addressing the complex estate, gift and income tax implications of wealth transfer. In addition, consistent with Stefanie’s belief that the most effective estate planning begins early, Stefanie has developed an estate planning program designed specifically to meet the planning needs of young families as they encounter common life events.

Stefanie’s unique approach and application of Trust and Estate law has been well acknowledged by the legal community. She served as a panelist at the 2010 Southern California Tax and Estate Planning Forum in a discussion involving multijurisdictional issues in estate planning and has authored publications for The Los Angeles Daily Journal and The Recorder. Stefanie has been listed in Southern California Rising Stars each year since 2009.

Stefanie received her Bachelor of Arts in 2003 from University of California Los Angeles, graduating magna cum laude with the distinction of departmental honors and a member of Phi Beta Kappa. Stefanie received her J.D. from the University of Southern California Law Center in 2006. Following her graduation from USC, Stefanie clerked for the Honorable Fred Keiser, Jr. in the New Jersey Superior Court, Family Law Division. During her time with the court, Stefanie also served as a court appointed mediator for small claims civil matters.

In furtherance of her estate planning work, Stefanie is currently pursuing a Master of Laws in Taxation (LL.M.) from New York University School of Law. Stefanie’s studies at NYU focus on estate, gift and income tax matters relating to wealth succession planning and family business ownership.

Stefanie lives in Los Angeles, with her husband Marc and their new son Noah, whom she regards as her greatest achievement.

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