The ABC's of Estate Planning: G is for Gift
G is for GIFT. When you transfer assets during your life, you are making a gift. Gifts are subject to gift tax to the extent they exceed the yearly threshold, currently $16,000 per person per donor. You may make unlimited gifts to your spouse. Any gift over that amount triggers the responsibility of filing a federal gift tax return, but the federal threshold for gift tax is gifts over $12 million, so most of us mortals are safe at this time. Remember – transferring a house or car to your children in a GIFT and there is reporting requirements!