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Gift Taxes

Each individual is allowed to give another up to $14,000 per year without any gift tax liability.  Anything over and above that amount per person accumulates during one's lifetime and once $5 million has been gifted, there is federal gift tax liability.  Therefore, whenever someone transfers an asset, be aware that this can result in gift tax liability.  Gift tax returns should be filed for any gifts given in excess of $13,000.00 per person per year regardless of whether or not gift taxes are due.  Gift tax returns and gift taxes must be filed by April 15th of the year following the year of the gift.   To receive a free copy of A Simple Guide to Understanding the Complexities of Elder Law – a helpful booklet we distribute to our clients which contains definitions and explanations of some important terms – please contact us.