The holiday season is quickly approaching. As this happens our minds turn to what gifts we could make to our loved ones in order to help them enjoy their lives more. Gifts are a great way for you to not only lower the value of your estate (reducing the inheritance tax paid down the road). They are also a way for you to get to see your loved ones enjoy what you have left them.

The Tax Free Gifts

The federal government allows you to give away up to $14,000 a year (in 2015) tax free. If you and your spouse are both alive this amount is doubled. This limit is a per recipient amount. That means that if you have multiple grandchildren the limit applies to each one of them, not the combined group. This means that anything under this limit does not need to be reported at all come tax time.

An additional benefit here is that monies paid directly to medical or educational institutions have no limits at all. Why not give the gift of education to your kids or grandkids. It is an investment in their future that they will be forever grateful for.

What to Give

If you are not going to be giving money but assets, what are good things to give away? Generally anything that is going to appreciate in value over time.

If you have questions about gift giving or have other elder law issues, contact the experts at Stano Law group today.