If you want to give someone $200K, what is the best manner to do this so as to avoid estate/gift taxes?

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If you want to give someone $200K, what is the best manner to do this so as to avoid estate/gift taxes?

Asked on June 3, 2013 under Estate Planning, California

Answers:

William Christian

Answered 9 years ago | Contributor

The annual exclusion alows you to transfer $14,000 each year to a recipient with no gift tax return. If you gift in excess of this amount, you will have to file a gift tax return, but should pay no taxes. Each person can gift up to a lifetime exemption of $5,250,000 without payment of gift taxes. This does, however, reduce dollar for dollar the amount you can transfer at death tax free.

The simplest way to do this is to just write a check. You can also transfer property, but need to appraise it to determine what its value is.

If you have other questions, feel free to call. 

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