What Is Gift Tax Exclusion?

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WHAT IS GIFT TAX EXCLUSION?
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Federal Transfer Taxes
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There are transfer taxes in the United States
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These would include the gift tax and the estate
tax
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Unified Gift/Estate Tax
The gift tax and the estate tax are unified
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There is a 5.34 million unified exclusion or
credit in 2014
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Asset transfers that exceed this amount are
potentially taxable
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Annual Gift Tax Exclusion
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In addition to the unified lifetime gift and
estate tax exclusion, there is also an annual
gift tax exclusion
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14,000 Per Person, Per Year
The amount of the annual gift tax exclusion is
14,000 per person, per year
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You can give as much as 14,000 per person to any
number of gift recipients within a calendar year
tax-free
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Clarity on Exclusions
We would like to emphasize the fact that there
are two different exclusions
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The annual gift tax exclusion allows you to give
up to 14,000 per year tax-free to any number
of individuals
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If you wanted to give a larger gift, you could
use a portion of your unified lifetime exclusion
to give the gift tax-free
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Tax Efficiency Strategies
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Utilization of the annual gift tax exclusion can
be part of a tax efficiency strategy for high
net worth individuals
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By giving these annual gifts you transfer assets
tax-free as you simultaneously reduce the
taxable value of your estate
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Hartford Wealth Preservation Consultation
Hartford Wealth Preservation Consultation
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If you would like to learn more about transfer
taxes and wealth preservation strategies, contact
our firm to schedule a free consultation
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• Nirenstein Horowitz
• [phone]
• www.preserveyourestate.net