The annual exclusion gift amount remains at $15,000 for 2019. The annual exclusion gift is the amount that you can give to any recipient during the calendar year without gift tax consequence. For example, in 2019, if husband and wife have two children, they each can give $15,000 to each child, total of $60,000. Upon their deaths, they could still leave $22.8 million – $11.4 per person – to their children without any federal estate tax. (State estate tax may differ.) If gifts exceed the annual exclusion, the transfer would erode the $22.8 million exemption they can pass tax-free upon their deaths. There generally is no tax reporting regarding the annual exclusion, however, there are exceptions depending on the type of gift and the recipient. If the law changes and the $22.8 million exemption is reduced by changes in the law, annual exclusion gifts will become even more important.
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John P. Dedon
Of Counsel
John P. Dedon is a tax lawyer with a talent for explaining the complexities of tax law in lay terms. Working in the estate planning, asset protection and business areas for more than 35 years, John helps clients preserve assets and plan for the future with traditional planning tools, including Trusts (dynasty trusts, intentionally defective trusts, grantor retained annuity trusts), LLC and partnership entities, and cutting-edge concepts such as cryonic preservation trusts.
Recognitions
Fellow of the American College of Trust and Estate Counsel (ACTEC)
“Hall of Fame” Washingtonian magazine Top Wealth/Financial Advisor
Martindale-Hubbell AV Rating/Top Rated Estate and Taxation Lawyer
Consecutive years named Washingtonian Best Lawyers; Best Lawyers in America® for Trusts and Estates; Top Lawyer and Top Financial Professional by Northern Virginia Magazine; Legal Elite by Virginia Business magazine
