Yakima Gift Tax Lawyer
People give gifts to loved ones to express love, friendship, and gratitude, but there are also benefits to gifting when you are considering estate planning options. According to federal IRS regulations and tax laws in Washington, estates over certain values will have to pay an estate tax. The event that triggers tax liability is the transfer of assets to your beneficiaries via your will or to your heirs through intestacy laws. Gifting is a way to spend down your wealth while you are still alive, possibly reducing or avoiding estate tax. Still, you must also contend with the federal gift tax that could lead to a pricey tax bill.
If you could be in a position to pay estate tax, it is wise to consider your gifting options to coordinate with estate planning. With a solid strategy, you can minimize later tax consequences by giving gifts. At Moulton Law Offices, we are knowledgeable about ways to protect your assets through gifting and can assist with the most beneficial options. Please contact us to set up a consultation with a Yakima gift tax lawyer, and check out a summary.
Overview of Gift Tax
The tax liability created by gifting does not apply to the gift itself, but rather the act of transferring something of value without getting something in exchange. In 2023, the gift tax annual exclusion is $17,000 for individuals and $34,000 for married couples. You can gift up to this threshold without incurring gift tax.
Therefore, a solid strategy for gifting could help you reduce the value of your estate if you have concerns about federal or Washington State estate tax liability at death. You will pay the gift tax for any amounts in excess of the exclusion at a progressive rate.
Additional Gift Tax Rules to Know
You can give assets to anyone under gift tax laws, so the recipient does not need to be a family member. Many people give gifts by donating to charity, educational institutions, hospitals, and museums.
All gifts of any nature are included in gift tax rules, including real estate and both tangible and intangible personal property. As long as the value of the item transferred is under $17,000/$34,000, you will not incur gift tax.
Legal Help with Gift Taxes
Creating a gifting plan is complicated because of IRS rules and the need to coordinate with estate tax planning in appropriate situations. Guidance from a Washington gift tax attorney is crucial, so count on Moulton Law Offices to:
- Consult with you on objectives for lifetime gifting;
- Review your financial and family circumstances for gifting opportunities;
- Explain options for giving to individuals, charities, and endowments;
- Help you organize and track gift giving according to the gift planning strategy; and,
- Keep you up to date on new developments in gift tax laws.
Count on a Yakima Gift Tax Lawyer for Legal Help
To learn more about how to use gifting to minimize tax liability now and in the future, please contact Moulton Law Offices. We are happy to schedule a consultation with a knowledgeable Washington gift tax lawyer.