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Gifting and federal estate exemption question
California
Viewed 39 times.
Posted 22 days ago in Estate Planning
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I have two questions:
I heard that there is a $13k gift limit per year. I also head that if you gift more than that, you have to file some IRS form and the gift over that amount, affects the federal estate exemption. So, let's say I gifted $500,000 in 2002 and filed the IRS form. Then I die in 2009. 1. Does that mean, since the federal estate exemption is 3.5 million, it is now 3 million because of my 500k gift in 2002? 2. Am I correct to assume that it's the person that gives the gift is the one that will be affected by the federal exemption when he dies?So, if I gift $500,000 to my niece, she has no issues with federal exemption when she dies related to this specific gift? Sorry if it's not making sense. I'm a little confused. Answers (2)
William Martin Burbank
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