Beware of Gift Tax Rules in Florida Estate Planning

Posted on Dec 29, 2011
If you have any concerns about filing a gift tax return, you may want to schedule a consultation with a Fort Myers estate planning attorney. Generally, gifting over $13,000 to an individual necessitates the filing of a gift tax return, according to Better Business Bureau. However, there are exceptions to this rule, depending on who you are gifting and what the gift is for.

If you are gifting your spouse, a gift tax return will not be necessary. Charities don’t count either because the IRS will consider gifts to charities contributions that may be tax deductible. School tuition doesn’t count either, and neither does medical expenses, even if you are paying those expenses for a non-relative.

However, such gifts must be paid directly to a hospital or school. Keep in mind that if you make a contribution to a Section 529 plan (college savings), your payment will not go directly to a college, so it likely will not be waived.

When you make a gift valued at more than $13,000, don’t stay awake at night worrying about the gift tax. The IRS will spot you $5 million throughout your lifetime, meaning you can gift $5 million in your lifetime, and $13,000 per person annually, before you trigger the gift tax. However, you still must file a return so the IRS can keep track of transfers.

Help From an Estate Planning Attorney in Fort Myers is Just a Phone Call Away

Fort Myers estate planning attorney Matthew A. Linde understands firsthand the importance of careful estate planning and the complexities of financial legal matters, such as probate, tax litigation and guardianship. For help with your estate planning concerns, contact our Fort Myers office to schedule a one-on-one meeting with a professional who can answer your questions – 239-939-7100 or 844-764-5492.