Title: What Is Gift Tax Exclusion?
1WHAT IS GIFT TAX EXCLUSION?
2Federal Transfer Taxes
3There are transfer taxes in the United States
4These would include the gift tax and the estate
tax
5Unified Gift/Estate Tax
The gift tax and the estate tax are unified
6There is a 5.34 million unified exclusion or
credit in 2014
7Asset transfers that exceed this amount are
potentially taxable
8Annual Gift Tax Exclusion
9In addition to the unified lifetime gift and
estate tax exclusion, there is also an annual
gift tax exclusion
1014,000 Per Person, Per Year
The amount of the annual gift tax exclusion is
14,000 per person, per year
11You can give as much as 14,000 per person to any
number of gift recipients within a calendar year
tax-free
12Clarity on Exclusions
We would like to emphasize the fact that there
are two different exclusions
13The annual gift tax exclusion allows you to give
up to 14,000 per year tax-free to any number
of individuals
14If you wanted to give a larger gift, you could
use a portion of your unified lifetime exclusion
to give the gift tax-free
15Tax Efficiency Strategies
16Utilization of the annual gift tax exclusion can
be part of a tax efficiency strategy for high
net worth individuals
17By giving these annual gifts you transfer assets
tax-free as you simultaneously reduce the
taxable value of your estate
18Hartford Wealth Preservation Consultation
Hartford Wealth Preservation Consultation
19If you would like to learn more about transfer
taxes and wealth preservation strategies, contact
our firm to schedule a free consultation
20- Nirenstein Horowitz
- (860) 548-1000
- www.preserveyourestate.net