DGAA bLAWg

'Tis the Season... for Gift Taxes

Web Admin - Tuesday, December 16, 2014

Illinois gift tax, Arlington Heights estate planning attorneyOnce again, it is that time of year, the time when families get together to exchange gifts, and spend quality time together. During this season, people do not ordinarily consider their taxes. After all, the middle of winter is almost as far away from April 15th as someone can get. Nevertheless, the gifts people give during this time of year can have a long-term impact on their tax situation thanks to the gift tax. Gift giving during a person's life is often a good way for someone to avoid estate taxes, so careful planning around this time of year can leave someone's family in a much better financial position.

What Gift Givers Should Know

Gift givers are the ones most on the hook for understanding the tax law when dealing with gifts. The most important thing for gift givers to understand is the fact that they are working under two separate but related gift giving limits. The first limit is known as the annual gift tax exclusion. This is the amount per year that any gift giver may give to any single person. The IRS has set that exclusion at $14,000 for both 2014 and 2015. If a person goes over that limit, then he or she must file a gift tax return. However, this does not necessarily mean that he or she must pay any taxes on the gift.

Filing a gift tax return triggers the second limit that gift givers are working under, the lifetime exemption. The lifetime exemption is the total amount of money that gift givers are allowed to give away over their yearly exemption before they start to owe taxes. The current lifetime exemption is $5.34 million. This means that if a person gives away $20,000 to a single person in a single year, then he or she must subtract $6,000 from his or her lifetime exemption. This is especially important because the lifetime exemption never resets and applies to estate taxes as well. For example, if a person gives away enough during his or her lifetime that he or she has used up $2.34 million of his or her lifetime exemption, then only the first $3 million of his or her estate's distributions are tax free. The rest may be subject to a tax rate of up to 40 percent.

What Receivers Should Know

Gift receivers have a much simpler set of rules to work under. Ordinarily, the gift giver pays the gift tax, and the receiver does not have to worry. If the person giving the gift does not pay the tax, then the IRS may come after the receiver, but usually people giving money in excess of the annual exclusion can also cover the gift tax. Additionally, people receiving five or six figure sums from foreign sources may also have to report that.

Tax day may come but once a year, but tax planning is a year round problem. If you have questions about how best to manage your estate, contact an Arlington Heights estate planning attorney today. The law firm of Drost, Gilbert, Andrew & Apicella, LLC serves clients in many northwest suburbs including Palatine, Schaumburg, Barrington, Inverness, Mount Prospect, Long Grove, Kenilworth, Riverwood, and South Barrington.

About the Author: Attorney Jay Andrew is a founding partner of Drost, Gilbert, Andrew & Apicella, LLC. He is a graduate of the University of Dayton School of Law and has been practicing in estate planning, probate, trust administration, real estate law, residential/ commercial leasing, contracts, and civil litigation. Since 2005, Jay has been a Chair of the Mock Trial Committee for the Annual Northwest Suburban Bar Association High School Mock Trial Invitation which serves over 240 local Illinois students each year.


Recent Posts


Tags

Illinois employment law attorney Illinois Human Rights Act Illinois real estate lawyer social media after death Rolling Meadows insurance dispute lawyers Crystal Lake traffic lawyer drugs speeding Schaumburg estate attorney workplace sexual harassment Arlington Heights Traffic Lawyer Rolling Meadows traffic attorney homestead rights tax attorney Des Plaines Traffic Lawyer Whistleblower Claims life insurance lawyer Schaumburg personal injury lawyer Buffalo Grove corporate attorney eluding a police officer Chicago employment attorney Illinois criminal defense attorney probate claims Illinois workplace lawyer reckless homicide Chicago trucking accident attorney car accident lawyers Des Plaines personal injury lawyer personal injury claims Rolling Meadows probate lawyer breach of contract bike accident Illinois employee rights attorney. Palatine business attorney unpaid overtime Rolling Meadows marijuana attorney Barrington personal injury lawyer Illinois business lawyer natural gas explosion employees Illinois wrongful termination lawyer Illinois elder law attorney vacation home fines Deer Park real estate law firm Illinois rollover accident lawyers consent to a search Illinois medical malpractice case Inverness probate lawyer Arlington Heights lawyer Palatine workers compensation lawyer foreclosure truck collisions insurance adjusters probate Palatine traffic accidents right to work Palatine estate planning lawyer spinal cord injury Schaumburg civil litigation attorney blended families loopholes small business wrongful death insurance claim dispute Family Medical Leave Act Riverwoods estate planning lawyer Illinois insurance claims lawyers Illinois defective products fatal car accidents Exclusions personal injury accidents Illinois insurance attorney guardianship attorney Rolling Meadows corporate lawyer independent contractor Illinois employment attorneys products liability Rolling Meadows employment law attorneys minimum wage POA digital assets employment law Schaumburg criminal law attorney BUI Class A misdemeanor Schaumburg estate planning attorney Crystal Lake personal injury lawyer boating under the influence Chicago will attorney Illinois Probate Act of 1975 insurance claims workers compensation Illinois medical malpractice claim slip and fall real estate Illinois probate lawyer Rolling Meadows traffic law firm spinal cord injuries Palatine civil litigation lawyer Chicago attorney insurance dispute, insurance dispute lawyers, insurance claim denial, insurance claim delays, Rolling Meadows insurance dispute attorneys Arlington Heights employment law attorneys traumatic brain injury Palatine injury attorney DUI penalities trust payments Barrington estate planning attorney Palatine personal injury lawyer Crystal Lake law firm whistleblower protections breathalyzer test irrevocable trust Inverness injury lawyer insurance denials hit and run accident fault based insurance license revocation Schaumburg personal injury lawyers Illinois insurance lawyer Rolling Meadows tax attorney Illinois employment law attorneys Arlington Heights TBI attorney Arlington Heights wills and trusts lawyers Chicago traffic lawyer Illinois registered agent Palatine law firm dynasty trusts Home Sale Contingencies Illinois boating accident lawyer loss of consortium owner responsibility personal injury claim natural gas ACA Landlord Tenant Ordinance ken apicella preventing accidents workers comp llinois Real Estate Lawyers Association Crystal Lake criminal defense attorney employment contract drunk driving Illinois traffic laws Schaumburg medical malpractice lawyer nursing home negligence Illinois traffic accident lawyer Long Grove estate planning attorney murder charges Illinois estate planning attorney federal regulations for LLCs South Barrington real estate attorney Rolling Meadows employment attorney job lawyers bad faith insurance claims Deer Park criminal attorney Illinois motorcycle accident lawyer advance healthcare directive Barrington boating accident attorney premises liability Palatine employment lawyer Illinois business law atorneys estate tax residential real estate rent to own real estate contracts estate planning, death tax, succession plans, business estate plans, Barrington estate planning lawyers drug crimes lawyer Crystal Lake employment attorney living trust construction contracts Chicago insurance claim attorneys Illinois collections attorney IRA benefits Rolling Meadows litigation lawyer Illinois trucking safety Crystal Lake medical malpractice law firm DUI attorney real estate zoning foreclosed rental property Palatine probate lawyer car accident lawyer traffic violations defense uninsured motorist senior citizens manufacturing commercial leases murder defense insurance disputes, Illinois insurance disputes, Illinois insurance dispute attorneys, denied insurance claims, Arlington Heights insurance dispute attorneys underinsured motorist healthcare claims landlord Illinois bicycle safety Illinois red light cameras Colin H. Gilbert denied insurance claims Des Plaines DUI attorney Rolling Meadows criminal lawyer traffic laws Rolling Meadows estate planning for college students pedestrian-automobile accident insurance claim dispute attorney Crystal Lake civil litigation lawyer Crystal lake insurance dispute attorney employee rights Chicago will attorney, social media platforms, Illinois estate planning lawyer, Deer Park traffic lawyer Schaumburg estate planning lawyer LLCs Long Grove estate planning Palatine criminal defense lawyer Arlington Heights wills and trusts lawyer wills and trusts estate planning, digital assets, Revised Uniform Fiduciary Access to Digital Assets Act, Illinois digital assets, Illinois estate planning, swimming pools motorcycle accident home inspection lawyer underfunded trust Buffalo Grove criminal defense lawyer pay when paid contract Crystal Lake pet attorney anesthesia errors financial advisors personal injury attorney medical marijuana Illinois Transfer on Death Instrument Barrington workers compensation attorney power of attorney for healthcare Palatine corporate attorney insurance dispute attorney unpaid assessment Illinois insurance claim attorney Palatine insurance lawyer Arlington Heights traffic attorney contracts Barrington criminal lawyer Illinois attorney insurance claim Arlington Heights personal injury lawyer construction accidents, personal injury, wrongful death, Arlington Heights personal injury attorneys, workers' compensation Illinois defective products attorney first degree murder Mount Prospect wills and trusts lawyers FMLA license reinstatement GM ignition switches Illinois job attorney Deer Park workers compensation lawyer Schaumburg drug defense lawyer Crystal Lake employment law attorney Schaumburg elder law lawyer Rolling Meadows insurance dispute lawyers, insurance dispute Buffalo Grove personal injury attorney digital evidence Barrington litigation attorney liability claims Attorney Ken Apicella traffic accidents PTSD South Barrington real estate lawyer Jay Andrew real estate attorneys Schaumburg employment law attorneys Barrington real estate lawyer defective products lawyer Chicago biking tips civil litigation unauthorized overtime overtime pay Rolling Meadows estate planning attorney workers compensation benefits Rolling Meadows personal injury lawyers medical research Crystal Lake will lawyer texting while driving health insurance dispute Barrington estate planning lawyer rest breaks Des Plaines motorcycle accident attorney capital gains tax Des Plaines real estate attorney Deer Park traffic accident attorney Chicago lawyer Chicago estate planning lawyer creditors operating agreements Barrington civil litigation attorney ObamaCare Arlington Heights pedestrian accidents employment attorney Buffalo Grove car accident lawyer personal injury lawyer living trust vs will estate planning insurance denial appeals Schaumburg car accident attorney controlled substance fiduciary rule delay holiday statistics Illinois wills and trusts attorneys severance agreements Arlington Heights car crash attorneys wrongful termination, employment law, whistleblower protections, Illinois employment laws, discrimination in the workplace Mount Prospect elder law attorney commercial leasing Home Remodeling Repair Act caretaker rights Inverness traffic law firm commercial real estate life insurance policy Deer Park motorcycle accident lawyer auto accidents jet ski Chicago insurance law firm Barrington employment law firm DUI Rolling Meadows DUI lawyer traffic violations School Visitation Rights Act BAC employment law, meal breaks, rest breaks, hotel employees, Des Plaines employment law attorneys no contest clauses Schaumburg insurance lawyers Chicago estate planning Illinois personal injury lawyer Federal Food Drug and Cosmetic Act Fourth of July personal injury law firm golf accidents Illinois home inspection Des Plaines drug lawyer Chicago corporate attorney trench injuries distracted driving accidents Mount Prospect real estate lawyer Barrington employment attorney deed transfer DGAA Crystal Lake pedestrian accident lawyer Illinois driving without license gift tax exemption, estate planning, estate planning strategies, Illinois estate planning, South Barrington estate planning attorneys pizza emoji drug crime sexual images federal crimes Illinois employment law firm Buffalo Grove law firm preventable medical errors Illinois employment law Inverness personal injury attorney Illinois workers compensation attorney Schaumburg injury lawyer college kids Illinois living will Des Plaines drug crimes lawyer Schaumburg probate attorney employment lawyer living wills Illinois injury lawyer Crystal Lake car accident attorney car crash insurance agent negligence Illinois Wage Payment and Collection Act Des Plaines accident attorney Illinois insurance claim dispute lawyer Legal Info Schaumburg construction accident lawyer real estate lawyer Super Mario Long Grove real estate attorney Inverness estate planning lawyer trucking accidents Illinois traffic attorney clemency medication errors rollover car crashes Deer Park personal injury lawyer compensatory time drug possession estate planning lawyer dog bites criminal distracted driving accident victims Illinois lawyer Illinois DUI attorney Illinois pet lawyer Crystal Lake business law attorneys Illinois insurance dispute lawyers marijuana Barrington Illinois estate planning lawyer meal breaks Illinois medical malpractice attorney blood alcohol content Barrington Traffic Lawyer Des Plaines collections attorney pedestrian accident Palatine punch death Inverness insurance attorney Crystal Lake injury attorney changes to mortgage law cell phone accidents Buffalo Grove employment lawyer underage DUI Illinois real estate traffic tickets slip and fall accidents Illinois medical malpractice lawyers probate fees Buffalo Grove injury lawyer Palatine elder law attorney head on collisions Des Plaines Rolling Meadows Attorney insurance claim delay involuntary manslaughter denial of life insurance Buffalo Grove probate lawyer Policy Cancellation employee discrimination Illinois estate planning law firm Employment Discrimination Law field sobriety test trucking accident lawyers Thanksgiving Chicago car accident lawyer Schaumburg criminal attorney Rolling Meadows business lawyer Arlington Heights insurance attorney landlord tenant law Deer Park medical malpractice attorney Schaumburg medical malpractice Des Plaines medical malpractice attorney Mt Prospect Attorney surgical mistakes Illinois personal injury lawyers suspended license insurance negligence Illinois mortgages wills wage theft Rolling Meadows criminal attorney cell phone BAIID Palatine employment attorney Rolling Meadows employment law attorney Food and Drug Administration's Food Safety Modernization Act hiring employees Illinois workers compensation lawyer Palatine construction attorney Buffalo Grove traffic attorney paid sick leave real estate contract Deer Park DUI lawyer traffic crimes Arlington Heights criminal lawyer disability benefits life insurance Arlington Heights employment attorney real estate closing Des Plaines personal injury attorney modern family estate planning Palatine employment law lawyer Illinois speeding lawyer Crystal Lake employment lawyer Long Grove real estate lawyer estate plan bicycle dooring accidents traffic deaths Arlington Heights tax lawyer Barrington employment law attorney pain and suffering insurance agents car crashes Schaumburg employment attorney in terrorem provision investment property pet law civil rights violation forming a corporation in Illinois Chicago employment lawyer license suspension Buffalo Grove personal injury lawyer elder law Crystal Lake personal injury attorney deadly crashes product liability living trust benefits Transfer on Death Instrument pedestrian injuries, pedestrian fatality Long Grove wills and trusts attorneys Illinois traffic attorneys subcontractor Deer Park accident attorney pregnant women Des Plaines pet law attorney low-ball insurance settlement Rolling Meadows Traffic Lawyer Crystal Lake car accident lawyer crossover accidents Deer Park employment law attorney filing a medical malpractice claim Buffalo Grove traffic lawyers Inverness elder law lawyer Illinois Workers’ Compensation Commission rollover accidents Des Plaines injury law firm privacy laws civil litigation attorney Illinois jet ski accident lawyer fiduciary rule elder abuse liens taxes Des Plaines criminal attorney power of attorney startup company Illinois insurance disputes insurance attorney personal injury, auto accident injuries, delayed injuries, serious injuries, Des Plaines personal injury attorneys rumble strips Rolling Meadows insurance attorney Self-Directed IRA Accounts digital information drunk driving statistics Detainer Actions DUI defense Liquor Control Act Palatine drug lawyer construction accidents car accident Crystal Lake bike accident lawyer Schaumburg personal injury attorney healthcare Rolling Meadows insurance lawyer Colin Gilbert privacy driving license probate lawyer comparative negligence installment contracts revenge porn traumatic brain injuries Arlington Heights wills and trusts attorney estate planning trusts Inverness civil lawyer insurance claim denial Des Plaines personal injury lawyers child safety agent brain injury Do Not Resuscitate Buffalo Grove real estate attorney Illinois tax attorney Schaumburg wrongful death attorney caregiver Fair Labor Standards Act medical malpractice compensation DNR Schaumburg corporate attorney Barrington business law firm Illinois employment laws problem employees new real estate form Illinois car accident attorney Illinois insurance claim dispute lawyers Arlington Heights personal injury attorney Illinois small business wrongful termination business litigation Palatine traffic lawyer jet ski accidents life insurance claims Inverness real estate lawyer estate attorney Illinois estate planning digital assets, digital fiduciary, estate planning, digital content, Long Grove estate planning lawyers traffic offenses Arlington Heights medical malpractice lawyer special needs trust IRELA automated cars Illinois Smoke Detector Act Crystal Lake estate planning lawyer motorcycle accident lawyer Barrington criminal defense lawyer back injuries car crash injuries Crystal Lake tax lawyer FSLA Illinois civil litigation lawyer Des Plaines civil attorney digital media accounts, estate planning, Arlington Heights estate planning attorney, food poisoning hands free device Palatine trusts lawyer condo association employment law, Illinois employment laws criminal record Inverness accident lawyer criminal law Arlington Heights estate planning attorney Rolling Meadows accident lawyer income distribution deducation Crystal Lake insurance lawyer Crystal Lake medical malpractice attorneys gift taxes Illinois personal injury Illinois employment lawyer Des Plaines tax law firm personal injury Rolling Meadows personal injury attorney medical malpractice, missed diagnosis, delayed diagnosis, medical mistake, Deer Creek medical malpractice lawyers attorney fees Palatine Attorney Crystal Lake traffic attorney condo unfunded trust Crystal Lake medical malpractice lawyer cell phone tower data boating DUI car collision pedestrian accidents dealing with problem employees Des Plaines real estate lawyer Des Plaines claims law firm Illinois Sales Representative Act Arlington Heights trucking lawyer Barrington medical malpractice lawyers sexual harassment Retaliatory Discharge accidental death benefits DMV Illinois law Inverness corporate attorney Barrington attorney internet trusts drug crimes Barrington personal injury attorney mortgage Illinois will lawyer Illinois personal injury attorney trustee Long Grove estate planning attorneys Arlington Heights real estate lawyer comp time trauma after an accident marijuana crimes attorney dram shop law Kenilworth estate planning attorney corporate law Rolling Meadows car accident lawyers liability estate planning attorney Illinois LLC creation Barrington injury attorney Palatine corporate law attorneys Palatine real estate lawyer Schaumburg real estate lawyer Illinois wills and trusts vacation home Illinois trusts attorney work unions TBI Schaumburg Attorney murder insurance disputes sole proprietorship Illinois workplace discrimination attorney criminal defense Palatine civil attorney Buffalo Grove medical malpractice lawyers Barrington drug crime attorney Crystal Lake accident attorney Affordable Care Act Illinois construction accident attorney Rolling Meadows boating crash lawyer overtime violations Arlington Heights car accident lawyer employee misclassification IRA trust transfer appealing an insurance claim mass shooting denied insurance claim medical malpractice claims Kenilworth estate planning attorneys probate claims process Rolling Meadows medical malpractice lawyers Arlington Heights wills and trusts attorneys expungement Schaumburg traffic lawyer Des Plaines insurance attorney real estate attorney Rolling Meadows real estate attorney boating accidents pet bites probate process Arlington Heights Attorney icy parking lots Illinois traffic ticket lawyer Buffalo Grove insurance claim dispute lawyers real estate leasing Rolling Meadows drug defense attorney Rolling Meadows personal injury lawyer IRS Forcible Entry texting and driving Inverness DUI lawyer Joliet general practice lawyers Inverness real estate attorney car accidents Arlington Heights accident attorney Illinois pedestrian accident attorney employment contract, employment law, employment at-will, Deer Park employment law attorneys, contract, Arlington Heights injury attorney CAM bicycle accidents insurance claim denials Kenilworth estate planning lawyer Illinois corporate lawyer insurance dispute institutional trustee

Archive