2014 Inflation Adjustments – You May Gift $14,000 Tax-Free (Grandma, are you reading this?)

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May 6, 2014

The Internal Revenue Service announced in October 2013 the annual inflation adjustments for a variety of tax provisions including tax rates, standard deductions, limitations for itemized deductions, and exclusion amounts. Fortunately for children and grandchildren alike, a taxpayer may gift $14,000.00 per year per person without paying any taxes. Accordingly, a married couple with three children could gift each child $28,000.00 thereby reducing their estate by $84,000.00 without paying a dime in tax. Tax-free gifting is a great way to reduce your estate to ensure it is below taxable thresholds upon your passing. Please contact your favorite Ruder Ware estate planning attorney to learn more about tax-free and tax-deferred estate planning techniques.

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