Spokane Gift Tax Lawyer
Many people choose to give gifts to express love and friendship, but you might not realize how your generosity can have financial benefits for estate planning. Both the federal government and Washington State have established a tax on higher value estates, which is levied upon the transfer of your assets to beneficiaries at your passing. Gifting is a way to spend down your estate prior to death, potentially reducing or eliminating the estate tax. However, there is also a gift tax under federal law, and you must account for these provisions with estate planning.
Because of the complications with gift taxes and close relationship to estate planning, it is smart to rely on knowledgeable legal counsel for assistance. At Moulton Law Offices, our team is committed to helping you protect your wealth, and lifetime gifting may be an effective strategy for achieving your goals. Please contact us to set up a case evaluation with a Spokane gift tax lawyer, though some general information is useful.
How the Federal Gift Tax Works: This tax is considered a transfer tax because it arises when an individual gives something of value to another person without receiving substantial value in return. For 2023, a taxpayer can gift items up to $17,000 in a given tax year without triggering the gift tax. There is also a lifetime gift limit, which is $12.92 million for 2023.
As such, you can transfer up to $17,000 per person under the annual exclusion limit to reduce your estate value. You will pay gift taxes on any excess amount, at a rate that increases with the value of the gift. Plus, any amount you gift above the yearly threshold will also count toward your lifetime gift limit.
Lifetime Gifting Rules: With few exceptions, gifts of any real estate or personal property will be taxable, whether or not the asset is tangible or intangible. However, being married enables you to double your gifting, thereby reducing your estate value as well.
You can gift assets to anyone, so a family relationship is not necessary. Many people choose to donate cash or other gifts to charity.
Legal Guidance is Essential: Our Washington gift tax lawyers at Moulton Law Offices understand the complex IRS rules governing gifts, so we will explain how the details impact your tax planning. We serve your needs with gift tax matters by:
- Assessing your current financial and family situation;
- Consulting with you on goals for lifetime gifting;
- Describing options for gifting to individuals, trusts, charities, and others;
- Helping track your gift giving and organize your plan for lifetime gifting;
- Assisting with gift tax returns and future planning to avoid tax liability.
Contact a Spokane Gift Tax Attorney to Learn More About Strategies
There are advantages to gifting as part of estate planning in Washington, and you can count on Moulton Law Offices to help you leverage them. We can explain options to minimize or avoid tax liability, so please contact us for details. We are happy to set up a consultation with a knowledgeable Washington gift tax lawyer.