How the Federal Gift Tax Exclusion May be Utilized in Estate Planning

A Gift Tax is a levy imposed on the transfer of assets, typically money or property, from one person to another without any tangible compensation in return. The primary purpose of this tax is to prevent individuals from avoiding estate taxes by giving away their assets before passing away. In the United States, the Internal Revenue Service (IRS) allows individuals to gift a certain amount each year to another person without incurring any gift tax. The annual exclusion amount as of January, 2024 is $18,000.00 per recipient. While the Gift Tax might seem like an additional financial burden, it does come with a notable benefit for taxpayers. By strategically gifting assets, individuals can reduce the overall value of their estate, potentially minimizing estate taxes in the long run. It is essential to keep abreast of tax regulations, as they often change over time.

 

For more information on estate planning in New York, New Jersey or Connecticut, please contact us at (914) 338-8050 or send an e-mail to keith@betenskylaw.com. We look forward to hearing from you.

Betensky Law PLLC
118 N. Bedford Road, Suite 302
Mount Kisco, New York 10549
(914) 338-8050
keith@betenskylaw.com
www.betenskylaw.com

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