Annual Gift Tax Exclusion Will Remain Constant in 2016

Since we are getting near the end of 2015, certain parameters that are relevant to the field of estate planning are subject to adjustments for 2016 to account for inflation. We recently passed along information about the unified federal gift and estate tax exclusion. It has been $5.43 million throughout this year, but it is going up to $5.45 million in 2016. This is not the only the exclusion that you can use to give gifts to others in a tax-free manner. There is also an annual gift tax exclusion. Throughout 2015, the annual gift tax exclusion has been $14,000. You can use this exclusion to give as much as $14,000 to an unlimited number of gift recipients tax-free. If you wanted to give gifts to individuals that exceeded $14,000 per person, you could start to use portions of your unified lifetime gift and estate tax exclusion. Though the unified gift and estate tax exclusion is going up by $20,000 next year, there will be no increase to the annual gift tax exclusion. It will remain co


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