The holidays are coming! Many of us are already planning gifts to loved ones. In 2018, the annual gift tax exclusion is $15,000. That means the IRS allows you to give up to $15,000 to a loved one - even someone not related to you. This amount changes each year. In 2017, it was $14,000. If you are married, you can double the annual exclusion amount if you and your spouse are both citizens and you agree to split your gifts. That means, you and your spouse could give a loved one a total of $30,000 in 2018.
IMPORTANT NOTICE: In certain situations, gifting large amounts is not a good idea. For example, if you do not have long-term care insurance and extensive assets, you should talk to an elder law attorney before making gifts. Due to the five-year look back, you may be penalized for gifts if you or a spouse need to apply for long-term Medicaid coverage within five years of gifting an asset. For more information and to speak to an elder law attorney, submit the contact form or call 704.887.5242.