The purpose of the federal gift tax is to ensure that people do not give away their assets during life to avoid paying federal taxes at the time of death. These taxes change from year to year and make gifting a challenging environment.
If you are considering giving a large financial gift, call Karen Brady of Law Offices of Karen Brady, P.C., at 303-835-1811. She can recommend options to help you minimize taxes now and in the future.
For more than 20 years, our firm has been serving clients in the Greater Denver, JeffCo and Front Range areas. We are committed to getting to know our clients, understanding their goals and needs, and recommending solutions tailored to each person's unique situation.
Gift Taxes and Estate Planning
Federal gift taxes are paid by the gift giver, not the recipient. Currently, you can give up to $5 million in gifts in your lifetime before you start paying the gift tax; however, that limit will go down to $1 million in 2012. Gifts under $13,000 to any one person per year will not incur taxes. Likewise, medical and educational expenses, gifts to your spouse, and gifts to a political organization are not taxable.
It pays to review your options with an experienced Denver federal gift tax lawyer before making a large financial gift. We will evaluate your financial situation and explain options that can help you minimize or completely eliminate gift taxes. Additionally, through proper gift planning and estate planning, we can help you remove a large portion of your estate through gifts, allowing your heirs to save a significant amount in estate taxes upon your death.
For the latest information on gift tax and estate tax laws, call our Colorado attorney toll free at 888-806-7304 or locally at 303-835-1811. You may also contact us online.