This week I’m talking about the 2020 gift tax rules, and how you can take advantage of lifetime gift strategies while these options are still on the table. 

Gifting, especially during your lifetime, can be a powerful strategy to transfer wealth, business interests, property, and a variety of other assets to your family and heirs, and with the current generous gifting and estate tax rules, now is the time to gift. 

Democrat lawmakers are not big fans of the current gift and estate taxes, so if Trump loses in November, the clock may be ticking on you being able to take advantage of the current gift tax rules.

Today, I’m talking about the annual gift tax exclusion and how it works. In 2020, you can give $15,000 per gift recipient that isn’t subject to tax. So let’s say you have 4 kids. You can give each one of them $15,000 this year without that gift being taxable to them or you. If you’re married, you can give twice that amount - $30,000. But it doesn’t stop with your kids...you can give to grandkids, spouses of kids, etc. 

The rules are even more generous when you’re making direct payments to cover medical or tuition bills for your loved ones. 

I don’t see enough clients tax advantage of the lifetime gifting and the high exclusions that are available to them, yet it’s a powerful way to reduce the size of your estate, potentially lower your estate taxes, and pass on your wealth to your heirs. 

If you give above that amount to any one person in 2020, you may have to pay tax on that, but it’s also likely that you give substantially more than that without triggering taxes, and I’ll talk about how that works tomorrow. 

That’s it for today. Thanks for listening. My name is Ashley Micciche and this is the One Minute Retirement Tip. 

----------

>>> Subscribe on iTunes: https://apple.co/2DI2LSP

>>> Subscribe on Amazon Alexa: https://amzn.to/2xRKrCs

>>> Check out our blog: https://truenorthretirementadvisors.com/blog/

----------

Tags: retirement, investing, money, finance, finances, financial planning, retirement planning, saving money, personal finance, wealth management, money tips, fee only financial advisor, financial planner, financial podcast, retirement podcast, financial independence podcast