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THE ANNUAL GIFT TAX EXCLUSION THE
ANNUAL GIFT TAX EXCLUSION - The annual gift tax exclusion is $11,000 per person
(the person receiving the gift is known as a donee) by the person making the
gift (known as the donor). Example: A husband and wife with 5 children may each give an annual gift of $11,000 to each child; i.e., the father can make a gift of $11,000 each to 5 children or $50,000 and the mother $11,000 each to the same 5 children or $55,000 for the annual total of $110,000. This annual gift exclusion will not in any way diminish the amount of the lifetime federal estate tax exclusion that may be applicable at the time of death. Those
persons with sufficient wealth may use this method to greatly reduce the impact
of federal estate taxes upon their death beyond the lifetime exclusion and the
unlimited marital deduction. Ó 2000 James
W. Pearson, Jr. , All Rights
Reserved FOR
ADDITIONAL INFORMATION e-mail: lawyer@sun-in-law.com JAMES
W. PEARSON, JR. Attorney-at-Law |
Send mail to Lawyer@sun-in-law.com
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