Gift taxes are taxes that supplement the Estate Tax. Gift taxes are placed on gifts given away to any person while you are still living, so that you may not avoid estate taxes by making gifts of your estate. You may give up to $12,000 a year in cash or assets to an unlimited number of people each year without incurring gift tax liability, but the gifts must have no conditions attached. Married couples can give, as a couple, a $24,000 gift per year to as many people as they want. Under federal tax law, gifts totaling more than $12,000 to one person in one year are considered a taxable gift and generate a potential gift tax. It does not matter if you give one $13,000 gift or 13 gifts of $1,000 each, or one gift of $12,000 and a "birthday gift" of $1,000.
Gifts beyond the $12,000 limit (there is an exception for gifts that are directly paid by the gift giver for tuition and medical expenses) are considered "taxable gifts." Taxable gifts create liability for a gift tax. But gift tax is not due to be paid until you give away over $1,000,000 in your lifetime.
The Oklahoma Declaration of Gift of Cash over Period of Years with Splitting of Gift with Spouse is a legal document used to outline a planned gifting strategy where an individual intends to gift a certain amount of cash over a specific period of time, while also splitting the gift with their spouse. This type of declaration allows individuals to maximize their gifting while taking advantage of gift tax exemptions. In Oklahoma, there are different types of Declaration of Gift of Cash over Period of Years with Splitting of Gift with Spouse, each serving a specific purpose: 1. Annual Cash Gift Declaration: This type of declaration sets out the specific cash amount that an individual plans to gift annually over the period of years. It outlines the split of the gift with the spouse and may include any conditions or limitations imposed on the gift. 2. Multi-Year Cash Gift Declaration: Similar to the annual declaration, this type of declaration allows individuals to plan their cash gifts over multiple years. It provides a detailed breakdown of the cash amounts to be gifted within each year and the corresponding split with the spouse. 3. Irrevocable Cash Gift Declaration: This declaration refers to a legally binding document where the individual making the gift cannot reclaim or cancel the gift at a later stage. It provides additional assurance for the recipient of the gift. 4. Revocable Cash Gift Declaration: Unlike the irrevocable declaration, this type allows the donor to cancel or revoke the gift if circumstances change. It offers more flexibility for the individual making the gift and can be useful in situations where changes in financial or personal circumstances are expected. 5. Testamentary Cash Gift Declaration: This declaration pertains to gifting cash as part of a person's last will and testament. It outlines the specific cash amounts to be gifted to beneficiaries upon the individual's death, while also considering the splitting of the gift with the spouse. When drafting an Oklahoma Declaration of Gift of Cash over Period of Years with Splitting of Gift with Spouse, it is crucial to seek the guidance of a qualified attorney or legal professional to ensure compliance with state laws and maximize the benefits of gifting strategies while minimizing tax implications.
