Make Use of the Federal Gift Tax to Pass on Assets

January 23, 2017

While your estate plan should certainly include careful strategies about how you want to pass on your assets after you pass away, it might also be worthwhile to use the annual gift tax allowance to transfer some of your property while you’re still alive. This can help a loved one who needs assistance now and it can help you minimize the size of your estate. Of course, this is a strategy that should be evaluated by your New Jersey estate planning lawyer.gift taxes

Since the federal gift tax is based on gifts made within a calendar year, perhaps you’re looking ahead to what you want to gift in 2017. You are able to give up to $14,000 to each person every year without facing taxes. This means that if you have a larger gift, you can pool this with your spouse to give up to $28,000, or you can spread out your gift across several years.

In some ways, this allows you to plan ahead over many years and remove assets from your estate. It can also make sense for spendthrift children, who you may want to receive assets, but only in smaller portions than a lump sum. Depending on your needs and goals and the behavior of your beneficiaries, this might be the most effective way to handle your estate. However, this is just one strategy. This gift tax exclusion is something that will likely make up part of your estate planning but not the whole strategy. Meeting with an estate planning lawyer in Monroe Township can help you identify your short-term and long-term planning goals so that you’re making use of all relevant strategies.


Practice Areas:



Schedule your free Exploratory phone call

Click here to see how we
can be of assistance.

Payment Portal
for Tax and Accounting invoice

This link offers a secure, quick way to complete your payment with Omni360 Advisors LLC.

Our Social Media

Connect with us on Social Media using the following buttons:

Visit our Podcasts

Listen in, Join the Conversation!

Recent Posts

Donor Advised Funds: A Strategic Tool for Estate Planning, Tax Efficiency, and Multigenerational Wealth

Learn how donor-advised funds can support estate planning, reduce tax exposure, and simplify charitable giving for high-net-worth individuals and families. Donor-Advised Funds: Aligning Philanthropy with Financial Strategy For individuals and families focused on long-term wealth stewardship, charitable giving is often more than an act of generosity—it’s a strategic component ...

<p>The post Donor Advised Funds: A Strategic Tool for Estate Planning, Tax Efficiency, and Multigenerational Wealth first appeared on Integrated Tax Planning, Legal Planning & Financial Planning.</p>

Tax Season Is Over—Now What? Smart Financial Moves to Make After Filing

Tax filing season may be behind you, but important financial planning opportunities remain. Here’s what business owners and families should consider next. Tax Season Is Over—Now What? For many, the tax filing deadline brings a sense of relief. Documents ...

<p>The post Tax Season Is Over—Now What? Smart Financial Moves to Make After Filing first appeared on Integrated Tax Planning, Legal Planning & Financial Planning.</p>

Out-of-State Trusts: What They Are and How They Can Support Long-Term Wealth Planning

Learn how out-of-state trusts work, their potential benefits, and key considerations for business owners and families seeking tax efficiency, asset protection, and legacy planning. Out-of-State Trusts: A Strategic Tool for Modern Wealth Planning For business owners, executives, and multigenerational families, managing wealth across ...

<p>The post Out-of-State Trusts: What They Are and How They Can Support Long-Term Wealth Planning first appeared on Integrated Tax Planning, Legal Planning & Financial Planning.</p>