At the Law Office of Racheal L. Adkins, we help many individuals in El Paso, Texas, with estate planning and gifting strategies. Creating a gift trust can minimize estate tax liabilities. Tax laws can be complicated, so it is crucial to have an experienced attorney guide you. The government does place restrictions on the amount a person can gift each year. Gifting your assets to other individuals can reduce taxes. If you or a loved one wishes to gift money or assets, please give us a call to help you.
What is a gift Trust?
A gift trust is an irrevocable trust arranged so that transactions to the trust are not taxable. The gift tax exclusion under Internal Revenue Code Section 2503(b) allows each individual to give an unlimited number of people $15,000 each year, tax-free. The annual exemption for a married couple is $30,000. Multiple recipients can be added to the trust, resulting in estate tax savings. The gift must be a present of interest to qualify for an exemption, meaning that the recipient must have immediate access to use the money.
Why do I need a gifting strategy?
• Gifts are helpful to those who are participating in certain trusts.
• Reduce the taxes of both the grantor and beneficiary
• Reduce estate value or taxes
What are the benefits of a gift trust?
Having a gift trust has numerous benefits. Along with gift tax exclusions, trust assets are protected against creditor claims. If a beneficiary has financial problems or is involved in a lawsuit, the court or creditors cannot go after any of the trust assets. Trust assets are protected in a divorce and cannot be divided. Lastly, trust assets can avoid probate as long as the trust names successor beneficiaries and provides instructions for future distributions.
How can a gifting strategy attorney help?
The Law Office of Racheal L. Adkins will consult with you and take the time to understand your financial situation and determine if a gift trust is appropriate for your needs.
With long-term planning strategies, you can preserve your assets and wealth. Let us guide you through the process; contact us today.
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