What is the Gift Tax exemption?

Harry (Guest) on Wednesday, November 14 2012, 09:36 AM
We are working on our estate planning. I'd like to know if there is a Federal or MA state gift tax exemption. Would you please explain how we can gift to our grandchildren with this tax benefit?
1 response Add Yours
       
  •  
    Replied by Attorney Margaret Cross-Beliveau on Monday, November 19 2012, 11:22 AM · Hide · #1
    There is only a Federal Gift Tax; Massachusetts does not impose a transfer tax on gifts. Every U.S. Citizen has a cumulative lifetime gifting exemption that was $1,000,000 up until the passage of the recent tax law which increased it to $5,000,000 (but this may only be until the end of 2013). Additionally, every person has an annual gift tax exclusion of $13,000. Gifts do, however, have an effect on the Massachusetts Estate Tax. Furthermore, gifts to grandchildren carry an additional problem at the Federal level due to the Generation-Skipping Transfer Tax. A comprehensive review of a persons estate plan should be performed you are giving substantial gifts.
Your Response

Top Massachusetts Attorneys Ready To Answer Your Questions

1
Attorney Jack Merrill
Attorney Jack Merrill
Employment Law
2
Attorney Bruce Watson
Attorney Bruce Watson
Divorce, Criminal Defense
3
Attorney Chesley Oriel
Attorney Chesley Oriel
Business Law, Real Estate
4
Attorney Kenneth Simmons
Attorney Kenneth Simmons
Estate Planning, Elder Law
5
Attorney Liam Floyd
Attorney Liam Floyd
Trial & Litigation, Personal Injury
6
Attorney Tracy Fischer
Attorney Tracy Fischer
Divorce, Family Law, Mediation
7
Attorney Damian Riddle
Attorney Damian Riddle
Criminal Defense, Family Law, Drunk Driving
8
Attorney David Rubin
Attorney David Rubin
Divorce, Personal Injury
9
Attorney Bill Keller
Attorney Bill Keller
Real Estate, Personal Injury
10
Attorney Ann Trehub
Attorney Ann Trehub
Personal Injury
11
Attorney Howard Goldman
Attorney Howard Goldman
Business Law, Trial & Litigation, Real Estate
12
Attorney Amy Beth Baron
Attorney Amy Beth Baron
Divorce, Family Law, Mediation
13
Attorney Cameron Pease
Attorney Cameron Pease
Business Law, Trial & Litigation, Real Estate
14
Attorney Larry Krasnow
Attorney Larry Krasnow
Trial & Litigation, Personal Injury, Elder Law
15
Attorney Steven Houde
Attorney Steven Houde
Personal Injury
16
The Editor
The Editor
Divorce, Bankruptcy, Estate Planning, Business Law, Trial & Litigation, Criminal Defense, Family Law, Tax Law
17
Attorney Jake Walters
Attorney Jake Walters
Business Law, Real Estate
18
Attorney Allan Baron
Attorney Allan Baron
Estate Planning, Real Estate, Elder Law
19
Attorney Marco Schiavo
Attorney Marco Schiavo
Bankruptcy, Business Law, Real Estate
20
Attorney Bill Mayer
Attorney Bill Mayer
Divorce, Trial & Litigation, Family Law