If you have enjoyed a significant amount of success throughout your life you may be faced with a pleasant problem of sorts.
The powers that be sit poised to consume a significant percentage of the resources that you intend to pass along to your loved ones via the imposition of the estate tax if they exceed a certain amount.
To prevent people from giving gifts while they are still alive in an effort to get around the estate tax there is a gift tax in place. It is said to be unified with the estate tax.
There is a unified exclusion that stands at $5.12 million as of this writing. So if you gave $5.12 million in gifts using the lifetime exclusion the entirety of your estate would be subject to the estate tax.
On a positive note there are some gifts that can be given in a tax-free manner that do not impact your lifetime exclusion. You can pay the school tuition of any number of students totaling any sum of money free of taxation. One can also pay medical bills for others as a gift without incurring any gift tax liability.
These are a couple of ways that you can make a difference in the lives of people that you love while enjoying positive tax consequences.
If you are interested in learning more about tax efficiency strategies simply take a moment to pick up the phone to arrange for a consultation with a seasoned and savvy Indianapolis estate planning lawyer.
Mr. Kraft assists clients primarily in the areas of estate planning and administration, Medicaid planning, federal and state taxation, real estate and corporate law, bringing the added perspective of an accounting background to his work.