How Much Can I Gift Each Month?

Making gifts is a good way to start distributing your estate while you are still in full control.

Many people wonder how much they can gift without paying gift taxes…

The good news is that currently (as of 2017), you have about $5,000,000 (5 Million Dollars) of lifetime exemption to paying gift taxes.  That means that you can make a gift of up to $5,000,000 without paying gift tax.  But, the money given today applies against your $5,000,000 estate tax exemption later.

If you make a gift of over $14,000 per person per year, you must file a gift tax return.  But, you don’t pay any taxes until you reach that exemption number.  That is not $14,000 total gifts per year, that if $14,000 to each person each year.  For example, you give your 3 children $10,000 each.  That is, $10,000 per person this year.  No gift tax return is due.  However, if you gave them $14,001 each, then a gift tax return is due.

But, no good deed goes completely unpunished.  If you should need to qualify for Medicaid within 5 years of making the gift, it can be counted against you…

As always, it is best to seek professional advice.

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from DeWitt Law Firm, PLLC