You can’t take it with you and gifts up to $12,000 in 2008 and $13,000 in 2009 to any number of people every year, are not taxed as gifts and you do not have to pay any any gift tax on these amounts. Recipients never owe income tax on the gifts, it is always the giver that pays tax on gifts over the amounts above and still you can give away a million dollars during your life time over and above these gift amounts and never have your estate have to pay taxes on the million dollars. I am reminded of the German practice of giving more vacation to the new young workers so they can vacation while they are young with vacation tapering off as they age. Now is the time to let go of what you have earned by giving your grandchildren, nieces, nephews, children gifts of substantial money each year as long as the gifts are not for more than the amounts set forth above to any single person. In other words, if you have a son with 5 children and you can afford it, give your son, his wife and each of the 5 children $10,000 a piece and be happy. Wishing you the best, I am, R K Prater. Give me a call to discuss this issue and more in detail regarding your Estate and the pleasure of gifting to your loved ones.
October 11, 2009
Newnan Pratlaw || Gift Gift Gift
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