Estate Planning Pitfall – You don’t meet the tax requirements for splitting gifts
Abstract: The annual gift tax exclusion is a powerful tool in the estate planning toolbox. By using the annual exclusion, a person doesn’t owe any gift tax on amounts transferred to another person up to a specified limit. The limit is $15,000 per recipient for 2021 (the same as it was in 2020). Even better, taxpayers can double their tax pleasure by “splitting gifts” with their spouse. This brief article explains the tax requirements necessary to split gifts.