Planning Ahead	In Crisis	Special Needs	Advocacy

Estate Planning

Annual Gift Tax Exclusion Jumping To $13,000 Next Year

The annual gift tax exclusion will increase from $12,000 to $13,000 effective January 1, 2009,
the Internal Revenue Service (IRS) has announced. The gift tax exclusion is the amount the
IRS allows a taxpayer to gift to another individual without reporting the gift.

The increase means that more can be given away for estate tax planning purposes. For example,
a married couple with four children will be able to give away up to $104,000 in 2009 with no
gift tax implications.

The tax code permits the gift tax exclusion, which has remained at $12,000 since 2006, to rise
when inflation would produce an increase of $1,000 or more. This year's inflation figures pushed
the amount above the next $1,000 threshold.

For more on this and other inflation-adjusted tax figures for 2009, click here

For more from ElderLawAnswers on estate taxation and gifts, click here

Print or Save this Article (PDF)

Back to Estate Planning Articles

Information and articles from our website are presented as a public service by Severns & Stinson. We help our clients protect their assets and their rights to health care and long-term care. This article is general in nature and is not to be taken as legal advice to any particular person. Consult an attorney for specific legal advice for your circumstance.