The annual gift tax exclusion will increase next year to $15,000, a $1,000 hike over this year’s figure and the first jump since 2013.
Thus, you will be able to give up to $15,000 apiece to a child or any other person free of gift tax and without having to tap your $5,490,000 estate and gift tax exemption. Your spouse can also give $15,000 to the same donee, making the tax-free gift $30,000. For example, if you are married with three children and seven grandchildren, you can give up to $30,000 in 2018 to each of your kin without gift tax consequences.
As always, if you have any questions about how you can incorporate this increase into your tax strategy, please speak with your ALL advisor. We can be reached at 617.738.5200 or by clicking the contact button below.
