2022 estate and gift tax planning

Recent changes by the Internal Revenue Service will allow taxpayers to gift more to their heirs during life and even after death. Certain gifting strategies will also allow you to make gifts to children and grandchildren without paying any gift tax—an investment in their future, and future potential tax savings for you.

2022 gift tax exclusion amount

This year, the IRS allows you to make estate or gift tax-free gifts up to an inflation-adjusted $12,060,000. It’s important to note that some states also have gift and/or estate taxes; the gift tax exclusion amount is limited to federal gift and estate taxes.

Types of gifts you can give to heirs

These gifts can come in a variety of forms, from paying for college tuition to covering medical expenses for an heir to placing assets in a trust for future use by a beneficiary. With each type of gift comes planning considerations and complexities for consideration in order to minimize your tax burden and maximize the impact of your gifts.

Considerations for 2022 estate and gift tax planning

For strategies to help with tax planning from a federal estate and gift tax perspective and to learn how to make gifts to children and grandchildren during 2022 while incurring little or no gift tax, download our white paper, 2022 Estate and Gift Tax Planning.

The white paper covers the following topics:

• Use of applicable exclusion amount to reduce estate and gift tax
• Annual gift tax exclusion
• Filing gift tax returns
• Tuition payment exclusion
• Section 529 college savings plans
• Medical payment exclusion
• Gifts in trust
• Advanced planning
• Charitable gifts
• Asset titles and beneficiary designations
• Digital assets and passwords
  

It’s important to consider your strategic gifting strategy in the context of your overall financial goals and objectives. If you have any questions relating to estate and gift tax planning, please contact us.

Download the white paper.