Wills are legally bound directives that state who will receive your property upon your death…
The Time to Send Your Gift is NOW!
Are you thinking about giving a gift from your estate? If so, the deadline to give your gift is quickly approaching!
Taxpayers are allowed an annual exclusion amount of $14,000 from gift taxes. If you are considering making a gift as a way of getting assets out of your estate, time is of the essence.
Unlike tax and other deadlines, for IRS purposes the date of gifts and charitable contributions is not the date the check was written, but the date the check was mailed or postmarked. Checks do not need to be cashed by the receiving party before December 31st to be considered made during that tax year.
If a gift is made via credit card, the amount you give is deductible as a charitable contribution in the year the charge is made. As long as a charge is processed before 11:59 pm on December 31st, it will count towards that current year.
By gifting, you will be able to offset your income by the amount you give—up to and including $14,000. Many people find this to be an attractive way to transfer assets to other family members, in addition to the tax benefits that come with reducing your adjusted gross income by the amount of your gift, whether to a family member or an organization.
Qualified charities who receive your gift of over $250 will send you a letter of acknowledgement for tax purposes.
To discuss whether charitable gift giving can benefit your estate plan, contact an estate planning attorney today.
Eric J. Einhart
Russo Law Group, P.C.
100 Quentin Roosevelt Blvd., Suite 102
Garden City, NY 11530
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