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Give Less To IRS, More To Family

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Once you come to the realization that your store of financial assets exceeds the unified estate/gift tax exclusion amount you have a pleasant problem on your hands

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									                                 Give Less To IRS, More To Family

Once you come to the realization that your store of financial assets exceeds the unified estate/gift tax
exclusion amount you have a pleasant problem on your hands. You have to seek ways to gain tax
efficiency, and one possibility would be to give certain types of gifts to family members or others that
you care about.

While the gift tax is in place to prevent people from giving away all their resources in an effort to avoid
the estate tax there are a handful of exemptions and some of them are not very well known.

If you had a family member or friend who was saddled with some large medical bills without the
ability to pay them comfortably, you could choose to pay these debts without incurring any gift tax
liability.

This medical exemption extends to some insurance purchases. So you can actually pay the health care
insurance premiums for others as a gift and this gift will not be taxed.

Another exemption that can be utilized to great advantage is the educational exemption. If you have
heirs who are still of school age you can pay their tuition as a gift and it will not be taxed by the IRS.

The above exemption only applies to tuition. But, there is a $13,000 per person annual exemption that
would allow you to provide a direct cash gift to the student to assist with fees and living expenses.

Should you be interested in learning more about measured gift giving as a way to reduce your estate
tax exposure, don't hesitate to pick up the phone to arrange for an informative consultation with a
licensed and experienced Indianapolis estate planning attorney.

Experienced estate planning attorneys Indianapolis IN of the Frank & Kraft Attorneys at Law offers
estate planning and business planning resources to residents of Indianapolis IN. To learn more about
these free resources, please visit http://www.frankkraft.com today.

								
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