Giving a gift worth more than $13,000 usually means a gift tax return must be filed. There are, however, exceptions to this rule, such as gifts to charities or the payment of school tuition or medical expenses. Even if the gift requires a gift tax return to be filed, the gift tax will not be triggered by gifts less than $13,000 annually or $5 million during your lifetime.
See "Beware of Gift Tax Rules in Florida Estate Planning" (Decemeber 29, 2011).
By Derek Young, Associate Editor, Wealth Strategies Journal
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