The federal government enables you to take advantage of a program known as the gift tax. Every year, gift tax amounts are announced so that you can make these gifts free of paying any taxes or needing to file a gift tax return. These are known as annual exclusions gifts and the maximum for 2021 is $15,000 per person. In 2022, that amount will increase to $16,000 per person.
Over the course of your lifetime, you can transfer these assets on an annual basis without triggering your gift tax exemption amount. In 2021, the gift tax exemption amount is $11.7 million, meaning that you could take advantage of supporting your loved ones now without triggering any additional tax consequences during this time.
If you want to make use of gift tax exemptions and incorporate this into your broader estate planning strategy, schedule a consultation with an experienced estate planning lawyer. Leveraging this along with long term planning, such as incorporating materials inside your will or developing a living trust can help you to accomplish your estate planning goals.
The support of an estate planning lawyer can also help you adapt your strategies as time brings about the need for new tactics or as state and federal laws could potentially impact your future.
A Virginia Beach, VA can assist you with these aspects of your planning. Schedule a time to meet with a Virginia Beach estate planning lawyer today.