Starting in 2013, the annual exclusion amount from gift taxes will increase from the current $13,000 per year to $14,000.

That’s a $14,000 gift per person, per calendar year. In other words, parents can give each child $28,000 per year ($14,000 x 2).

You can give away more than that if you are so inclined to do so, but after the $14,000 annual threshold, you’ll start cutting in to your lifetime exclusion amount. This year the lifetime exclusion amount is $5,120,000, but don’t memorize that number because it expires at the end of 2012 and is likely to be changed as part of the “fiscal cliff” discussions in Congress.

©2012 Wittenburg Law Office, PLLC. All rights reserved.

Disclaimer: This Blog is for informational purposes only and is not to be construed as legal advice. If you have questions, please seek the advice of an attorney.  An attorney-client relationship is not formed by reading this Blog. If you are interested in Wittenburg Law’s representation of you, you must contact Wittenburg Law for a determination of whether your matter is one for which Wittenburg Law is willing and able to accept representation of you.

Bonnie Wittenburg, Wittenburg Law Office, PLLC, Minnetonka, MN  bonnie@bwittenburglaw.com  www.bwittenburglaw.com