VIEWS: 11 PAGES: 1 CATEGORY: Legal POSTED ON: 9/20/2012
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
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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