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

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

Archive