Yes, the gift tax exclusion for 2011 and 2012 is $5,000,000 per person.
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Although the above response is believed to be accurate, it should not be relied upon as any type of legal advice because the information provided is incomplete. It is intended to educate the reader and a more definite answer should be based on a consultation with a lawyer. No attorney client relation is formed with me without a written contract.
Good Luck starts with a strategy and a plan.
Robert J. Suhajda, MS,CPA
17721 Norwalk Blvd. #43
Artesia, CA 90701
Tax Relief Lawyer. Former financial auditor and controller. Admitted to US Tax Court, Income Tax, IRS representation, Fiduciary income tax returns, Estate and Gift tax returns, Homeowner Association Strategist.
You should be able to do that. You should consider what assets you want to gift, whether a trust may be better than an outright gift, and of course, you should consider Oregon estate tax laws as well. (Which based on your plan to keep a $1 million estate, sounds like you have). An appointment with an attorney may be a good investment. The last thing you want to do is to make a mistake on a 2.5 million dollar estate.
Let's assume (1) you have not previously made any reportable gifts, (2) your gifts will be made by wire transfer of immediately available funds to other individuals and (3) you are not married. Then you can make gifts totaling $5,000,000 in 2011 and 2012 without incurring any gift tax. You must file a Form 709 (Gift Tax Return) in 2012 if the gift to any one individual in 2011 exceeds $13,000. You must file another gift tax return in 2013 if the gift to any one individual in 2012 exceeds $13,000. Since these rules reflect changes made at the end of 2010, the current Form 709 and its instructions do reflect the rules for gifts made in 2011 and 2012. Also take care to complete your gifts before 2013 when the $5,000,000 exemption is scheduled to be lowered.