Monday, December 30, 2013
Clients who have waited until the last minute need to make their “annual exclusion” gifts now.
Under Section 2503(b), a donor can use the annual exclusion to gift up to $14,000 per donee in 2013 and 2014 to as many donees as the donor wishes. Many of these gifts are made in January so the gift can begin appreciating as soon as possible. However, if a client were to gift her child on December 31, 2013, and then again on January 1, 2014, then the $14,000 annual exclusion could apply to both gifts.
See Jay E. Rivlin & Christiana M. Lazo, Clients Can Minimize Fees on ‘Annual Exclusion’ Gifts, Financial Advisor, Nov. 26, 2013.
Special thanks to Jim Hillhouse (Professional Legal Marketing (PLM, Inc.)) for bringing this article to my attention.