Wealth Preservation, Trusts and Estates

You Must File The Gift Tax Return or Extension for Gifts In 2010
By April 15th 2011

If you made a gift to a child or
grandchild in 2010 you must file
the return or an extension by April 15th.

Once the extension is filed, you have until
October to file the return.  However,
extensions do not automatically extend
the time to pay the tax.

So, if your gift created a tax (it was
more than the annual exclusion amount
and/or you previously used your lifetime
exemption, you may have a tax laibility.

You should also consult your tax preparer or estate tax adviser if you
made gifts to grandchildren or great grandchildren (or to a trust)

which might require a return to allocate the generation skipping
transfer tax exemption.

For questions about gifting in trust or outright to your
family members, please call David M. Frees III
610-933-8069

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By: David M. Frees III, Esquire Will, Trust and Estate Planning for the End of The Year.

Want to make sure that you avoid the most common estate planning mistakes at the end of the year and that you are reviewing and doing what you need to complete to make sure that your new year starts off just right?

Want to know how much you can gift without filing a gift tax return?

Need to know when those gift checks have to be cashed before you’ve got a problem?

Then click here for a short video and a checklist that you can print out and follow.

It could save you and your heirs thousands to tens of thousands of dollars.

END OF YEAR GIFTING, Estate Planning and Asset Protection CHECKLIST, and VIDEO by David Frees

David M. Frees III
Asset Protection and Estate Planning

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By: David M. Frees III Review David Frees’ AVVO Lawyer Rating.
Wills * Trusts * Estates * Estate Planning * Asset Protection Planning
Malvern, Phoenixville, and West Chester Law Offices

It is that time of year when we start to get questions about gift taxes, the gift tax exemption, and about how much you can give to your children and grandchildren.

This year we are getting a new question for the first time, “I thought that the amount goes up every year so how much can I give this year?”

Well, the reason many people believe the amount of the gift tax exemption (the amount that you can give without paying gift tax or filing a gift tax return) goes up every year is that it is indexed for inflation and has gone from the original amount of $10,000.00 to $11,000.00 and recently, to $13,000.00.

However, the amount does not go up every year. And, because the rate of inflation is so low (or perhaps non existent), the amount will remain the same for 2009 and 2010 unless Congress acts to change it as part of the review of the estate and gift tax that is still pending in Congress.

Quick Facts and Reminders about Gift Taxes:

Each person can give up to $13,000.00 for 2009.

A married couple can give $26,000.00 to each recipient even when one spouse has the assets and the other does not. (This is called a split gift and may require your spouse to sig the gift tax return)

If your child or grand child is married, you can also make a gift to the spouse. However, that gift is not protected in the event of a divorce.

You can make gifts of property, real estate, Limited partnership interests, stock or cash. However, the recipient acquires your basis in the asset and may have to pay capital gains taxes on the gift if the specific property is later sold for more than your basis.

Learn more about avoiding end of year gifting mistakes.

We also have a related article on our Estate Planning Blog on Three Gift Tax Questions
Thank you.

Please leave your questions and comments below.

David M Frees III
Will, trust, and estate planning lawyer
Chairman: Trust, Estate, and Wealth Preservation Section

You can find out more about David Frees and the trust, estate, and asset protection lawyers in the firm at Unruh, Turner, Burke and Frees.

* Note: In Pennsylvania, there are no legal specialties. Lawyers may not refer to themselves as “experts” or “specialists” in trusts, estates, wills, or other practice areas. Therefore, when we make reference to ourselves as will or trust lawyers, we mean only that we focus our practice to the areas of wills, estates and related matters.

To see a list of Unruh, Turner, Burke and Frees lawyers and Unruh, Turner, Burke and Frees practice sections click here.

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