Tag Archives: gift tax

Estate Planning and Gift Tax

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…