Gifts are thought to be simple. However, if you are serious about making savvy wealth transfers to loved one, then the annual gift tax exclusion (currently $13,000) is an important tool.
For some welcome straight answers on gifts and gift taxes, the The Wall Street Journal recently examined the "Basics of the Gift-Tax Exclusion."
While the original article doesn't offer exhaustive advice, it does provide practical pointers you can use. After all, anything related to tax planning can have hidden complexities.
Once you conquer the basics, and have a long-range plan in play, a gifting program can be one of the most powerful, reliable, and comparatively simple wealth transfer strategies.
Reference: The Wall Street Journal (August 4, 2012) "Basics of the Gift-Tax Exclusion."
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