Sacramento Gift Tax Attorneys
Gift taxes are exactly what their name implies: taxes levied by the government on gifts you make to others while you are still alive. You can minimize or sometimes completely avoid such taxes by following the advice of a qualified estate planning attorney or you can unwittingly run up your tax bill through acts of generosity.
If you live in the Sacramento area and have questions about this type of taxation, contact the estate law and gift tax attorneys at Generations today.
How gift or inheritance tax applies to you
If you give someone money or property valued over a certain amount while you are still alive, that gift may be subject to federal gift tax. In 2013, the limit on the amount that you can give without gift tax is $14,000. Gifts for this amount or less require no gift tax return and incur no gift taxes.
Even if your gift exceeds this amount, there are other exemptions and credits that might allow you to offset or eliminate the taxes you would normally owe. A Sacramento-area gift tax attorney can explain these rules to you in detail.
The relationship between gift taxes and estate planning
The real benefits of gift tax law are related to estate planning. With proper gift planning, families can transfer significant amounts of money to younger generations with no tax liability. As an example, if you and your spouse have three married children and six grandchildren, that adds up to twelve people who may receive $14,000 annually from each of you tax free:
- Your three children
- Their spouses
- Your six grandchildren
In this way, you can remove $336,000 a year from your estate, saving a considerable amount in estate tax upon your passing.
Taxes on gifts are paid by the person making the gift or the person leaving behind an estate. Therefore, the recipient of the gift does not need to pay taxes on the amount in question.
When you need a skilled gift tax attorney, call Generations
All attorneys are not equally skilled. Many lawyers who advise clients on gift taxes do it only as a sideline and are not aware of the latest codes and the newest strategies. If you require an experienced gift tax attorney in Sacramento, call Generations at 916-679-5550 or contact us today. We can help.