A gift tax is a tax that a person must pay to the federal government when he or she gives a gift at a value above the exempt amount. The exempt amount in 2012 was $13,000. There is no California State gift tax. Certain gifts, such as gifts to a charity and gifts to a spouse, are not subject to a gift tax. The recipient of a gift does not have to pay a gift tax.
It is important to be aware of this information about gift taxes in planning your estate, because it means that you can make certain gifts during your lifetime and not bear tax penalties. If you give a gift with a value above the exempt amount to someone who is not your spouse, you will need to file a return. Gifts that you make during your lifetime or from your estate may be subject to the generation-skipping transfer tax (GST tax), if you give the gift to someone who is more than one generation younger than you. It is best to consult with a California estate planning lawyer to find out the tax consequences of any gifts you are planning to make during your lifetime.
Call us today for an experienced estate planning lawyer in California
If you are wondering about the gift tax consequences of gifts you have planned, you should consult with San Jose estate planning attorneys. The legal team at Temmerman, Cilley & Kohlmann, LLP provides skilled counsel to clients to preserve your assets for your benefit and the benefit of your family. Call the firm today at our San Jose office at 408-780-1912 or our Danville office at 408-780-1912 or contact Temmerman, Cilley & Kohlmann, LLP online today.
– See more at: /blog/estate-planning-and-gift-tax/#sthash.nNoTNINs.dpuf