Tuesday, June 22, 2021

What You Need to Know About Annual Gifting

estate planning attorney Ann Arbor
Under current law, the annual gift tax exclusion is $15,000 per donor per recipient.  This means an individual can make as many gifts of $15,000 to as many people as he or she chooses, free of taxes for the recipients. Annual gifts don’t reduce the lifetime exemption for federal estate tax and gift tax for individuals. Currently, the lifetime exemption is $11.7 million per individual and $23.4 million per couple.  Most estates are significantly less than those amounts and will not be subject to estate or gift taxes. However, there’s a good deal of concern that Congress may reduce the lifetime exemption. If Congress does nothing to the current law, the exemption will return to approximately $6 million per donor in 2026. 

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If you’re interested in learning more about annual gifting, please contact estate planning attorneys in Ann Arbor at 734-665-4441.

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