By the Estate Planning Attorneys at Smith & Garg, LLC, serving The Woodlands, Spring, Houston, Conroe, Humble, Kingwood, Tomball, Cypress, Huntsville, Westchase, Southwest, Sugar Land, West Oaks, Alief, Memorial, River Oaks, Stafford, Katy, and Missouri City.

GIFT TAX

Transfers of property made during your life are subject to what is called the Federal Gift Tax. In January of 2001, the lifetime gift tax exemption was raised from $675,000.00 to $1,000,000.00 paralleling the increase in the inheritance tax. However, there are no scheduled increases for the gift tax as there are for the inheritance tax and the gift tax is not scheduled to be repealed in 2010 like the inheritance tax will be.

In reality, many Americans do not have to worry about the Federal Gift Tax. The annual allowance for an individual is $12,000.00 – $24,000.00 for married couples. It is good to know, however, that payments made directly to schools (qualified education organizations), medical providers, or political organizations do not count toward the gift tax exemption amounts.

Call Smith and Garg today at 281.210.0010 or complete our Contact Form and let us assist you with your wills and trusts.