Weinstein & Randisi
Toll free:800-768-1780

Resize the Content Text

Working with an estate planner can help people avoid a gift tax

Many people in New York and throughout the country prefer to give some of their money away to family and other loved ones while they are still alive rather than bequeathing it to them in a will. However, there are potential tax implications when you give someone a large amount of money or other assets. It's important to know what those are before you write that check so that you don't get stuck paying a gift tax that can run as high as 40 percent.

The bad news for gift-givers is that they, not the recipients, pay the tax. The good news, and there is a lot of it, is that most gifts are not subject to a gift tax. For example, gifts to a spouse are not subject to a gift tax. Neither is money that is provided for education as long as it is paid directly to the school. That's important to know for grandparents or others who want to make tuition payments. Payments for medical expenses are also exempt as long as the money is paid directly to the health care provider.

Even if you just want to give cash for someone to use in whatever way they choose, you have to give a lot before worrying about the gift tax. For tax years 2013 and 2014, only gifts of $14,000 or more to one individual are subject to this tax. If a married couple gives a gift together, that annual limit of $14,000 is doubled. Further, you may not even have to worry about the annual limit unless you plan to give away millions of dollars over the course of your life. The 2013 "lifetime exemption" is $5.25 million, and the plan is to raise it to $5.34 million this year.

If you work with legal and financial professionals who are experienced in estate planning, you can probably find ways to provide a significant amount of money to loved ones while you are still alive to see them enjoy it, and you can do so without having to write the government a big check.

Source: The Motley Fool, "Gift Tax in 2014: What Holiday Givers Should Know Now" No author given, Dec. 24, 2013

No Comments

Leave a comment
Comment Information
  • I wanted to write to say how pleased my wife and I were at your professional handling of our estate planning and preparation of new wills. We were put at ease by your visit to our home for an interview and were pleased that you listened to us and captured the things that we felt were important.

    --Robert and Christine Simonson, Fairport
  • In order to finalize the documents we came to your office and were greeted in a very professional manner and we could not have asked for finer service. We left with copies of everything we needed and feel very confident our needs have been met. Thanks again. We will surely recommend you should the opportunity arise.

    — Christine and Robert Simonson, Fairport
  • I have been working with Weinstein & Randisi for about two years now. Elizabeth Randisi, through a very thorough process, has helped my wife and me determine what is really important in our lives. Thus, we were able to draft a living will that reflected our most important values regarding our estate.

    --David and Ajia Cherry, Fairport
  • I would like to give a testimony for Elizabeth Randisi, an estate attorney with Weinstein & Randisi. Her knowledge of wills and estate planning was clearly demonstrated in her presentation to us. Realizing our need for a will, my husband and I went to see Elizabeth.

    --Kathy and Gary Gray, Webster
  • Filing for Medicaid is never an easy or fun process. However, working with the Weinstein & Randisi firm made the process simple and streamlined. We were able to obtain all files and records regarding Medicaid enrollment within a few days using specially prepared checklists and verbiage recommended by our assigned paralegal.

    --Ajia and David Cherry, Fairport
Awarded Top 50 Estate Planning Blog
Email Us For a Response

How Can We Help You?

Bold labels are required.

Contact Information

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.


Privacy Policy

Blog Feed


Weinstein & Randisi - estate planning

290 Linden Oaks, Ste. 200
Rochester, NY 14625

Toll Free: 800-768-1780
Phone: 585-310-1578
Rochester Law Office Map


Call us now for a free, 100% confidential consultation: