Estate Planning and Gifting

Denver Estate Planning Attorney

Making gifts to family members, charities and friends can be a valuable estate planning tool as well as a source of personal fulfillment. Gifting reduces the size of the donor's estate and shifts the income tax on the gifted property to family members who may be in a lower tax bracket.

Under current federal law each of us can give $14,000 in cash or other assets annually to an unlimited number of people. And, even if one gives in excess of $14,000 a year to a beneficiary, no gift tax is owed until the total amount of the annual overage exceeds $5,250,000. At that point the donor must file a federal gift tax return and pay a 40% tax on the excess gifts over $5,250,000.

While there is a $14,000 annual limit for gifts to individuals, no such restriction is imposed on gifts to qualified charities. Thus, a donor could give away millions of dollars to his favorite charity; not pay tax on the gift; and receive a tax deduction for the amount of the gift.

Do You Need Information on Gifting?

There are many nuances to gifting. For example, using a technique known as "gift splitting" you and your spouse can give $28,000 per individual instead of $14,000. And, the gift exclusion for a beneficiary who is attending college can be stretched to cover the student's room, board and tuition if the payment is made directly to the college or university.

Are You Considering Creating a Gifting Program?

The Law Office of James A. Littlepage provides detailed and personalized estate planning services to individuals throughout the Denver area and other front range communities, including assistance in establishing a Gifting Program. To obtain knowledgeable legal assistance contact us.

If you are considering utilizing gifting as part of your estate plan, contact a Denver estate planning lawyer to provide you with information and advice regarding how to proceed.