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IRS Increases Annual Exclusion for Gifts

By: Amy C. O’Hara, CELA, Partner, Littman Krooks LLP

December 31st will be upon us before we know it.  As estate planning attorneys, now is the time of year we work with clients to evaluate their wealth transfer strategies prior to year-end and for the coming year.

Effective January 1, 2018, the IRS has confirmed it is increasing the annual gift tax exclusion to $15,000 per individual recipient, up from $14,000 for 2017.  This increase is significant because it is the first increase since 2013.

The annual gift tax exclusion is the amount that a taxpayer can give to as many individuals as desired without incurring any gift or estate tax, or counting against one’s estate and gift tax exclusion amount. Annual giving can be an effective tool to reduce the size of one’s estate during one’s lifetime, thereby reducing estate tax liability.

Careful consideration should be made though in making gifts to loved ones with disabilities, and consultation with an experienced estate planning attorney is critical.

Please call us to schedule an appointment to review your estate plan and consider if annual gifting is appropriate for you and your family.

 

Learn more about elder lawestate planning and special needs planning at littmankrooks.com,  elderlawnewyork.com  & specialneedsnewyork.com. Have questions about this article? Contact us.


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