Tax-Free Family Gifting Strategies

Everything You Need to Know About Tax-Advantaged Wealth Transfers

Tax-Free Gifts 

Gifts can be made in cash or other assets, so long as the total market value of your gifts does not exceed $18,000 per recipient in a calendar year. 

Make Multiple Gifts 

Give up to $18,000 per year to unlimited individuals without filing a gift tax return or paying gift tax. You can also gift to trusts.

Married Couples Can Gift $36,000

The annual gift exemption is per “gifter.” If one spouse exceeds the per-person threshold in a calendar year, the other spouse may agree to split the gifts made by the couple for that year. 

Consider Lifetime Limits

For 2024, the lifetime federal gift and estate tax exemption is $13,610,000 per person. Gifts above the exemption amount generate a 40% federal gift tax.

“Under-appreciated” Benefit

If you gift $10,000 in stock and it appreciates to $15,000 next year, that $5,000 in appreciation is not considered part of your estate.

Other Options 

Payments for qualified tuition and medical expenses can be made on behalf of a beneficiary without incurring tax. There are no limitations to how much/how many of these expenses you can pay. duffygroup.bairdwealth.com

This information are Baird expert opinions today and subject to change.

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