Annual Gift Tax Exclusion

The annual gift tax exclusion is a simple estate planning option that reduces federal estate taxes. You can give away $14,000 tax free each year to as many people as you would like. If you are married, you and your spouse can each make annual exclusions gifts thereby doubling the amount you can gift tax free each year.

In addition to the annual exclusion, there is an unlimited gift tax exclusion for direct payments of qualifying medical and educational expenses. This is an unlimited exclusion which applies regardless of your relation to the recipient of the medical or educational services. To qualify the payments must be made directly to the medical provider or educational institution.

Consult your estate planning attorney for further information.