With the holidays fast approaching, giving is a topic on many minds, including considering what to gift to loved ones or finding a charity to donate to. Each year the IRS recognizes a gift tax exclusion. This is the amount an individual can gift to someone else or an entity without using any of their $11.4 million lifetime exemption amount, and without the necessity of filing a Form 709 Gift Tax Return.
The annual gift tax exclusion amount for 2019 is $15,000. A spouse may join in this gift by selecting to “gift split” with their spouse and thus gift double this amount to a $30,000 gift to any individual or entity.
When considering gifts and donations, it is a great time to explore personal values as well as uncover the values held by children and grandchildren individually and by the family as a whole. By modeling philanthropic behavior at home for their children and grandchildren, parents can influence them to have a sense of social responsibility toward those who need our help. This behavior encompasses not only writing checks to causes we care about, but also volunteerism – taking the kids along on the midnight run, cleaning up parks and other public areas, volunteering at a soup kitchen, or whatever the family cause happens to be.
Part of the work we do, is help guide families to define and develop these goals. We ask clients to think about what values and messages they want to leave for their kids, grandkids, and other relatives. These messages can add greater meaning to what we are leaving behind.
As always please contact us, (248) 409-0256, with any questions you may have.