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 Utah Declaration of Gift of Cash over Period of Years with Splitting of Gift with Spouse is a legal document that allows individuals to make a gift of cash over a specific period of time, while also splitting the gift amount with their spouse. This type of declaration is commonly used in estate planning and tax planning strategies, as it offers numerous benefits for both the donor and their spouse. This declaration provides individuals with the ability to make a gift of cash to a recipient, such as a family member, friend, or charitable organization, while also ensuring that their spouse receives a portion of the gift. By splitting the gift with their spouse, individuals can take advantage of certain gift tax exclusions and minimize potential gift tax liabilities. The Utah Declaration of Gift of Cash over Period of Years with Splitting of Gift with Spouse can be tailored to fit specific circumstances and preferences. It allows individuals to specify the amount of cash being gifted, the duration over which the gift will be made, and the percentage of the gift that will be given to the spouse. Some common types of Utah Declarations of Gift of Cash over Period of Years with Splitting of Gift with Spouse include: 1. Irrevocable Declaration of Gift: This type of declaration establishes a legally binding commitment to make the gift over the specified period of time. Once the declaration is made, it cannot be changed or revoked. 2. Revocable Declaration of Gift: Unlike the irrevocable declaration, this type of declaration can be modified or revoked by the individual at any time during the specified period. It provides individuals with flexibility in case their circumstances or intentions change. 3. Conditional Declaration of Gift: This type of declaration includes certain conditions or requirements that must be met for the gift to be made. For example, the gift may be dependent on the recipient's completion of a specific educational program or achievement of certain milestones. 4. Testamentary Declaration of Gift: This type of declaration is included in an individual's will or estate plan. It specifies that a gift of cash will be made over a certain period of time after the individual's death, with a portion of the gift being split with the surviving spouse. In conclusion, the Utah Declaration of Gift of Cash over Period of Years with Splitting of Gift with Spouse is a versatile and valuable tool for individuals seeking to make a significant gift of cash while also ensuring their spouse benefits from the gift. This legal document can be customized to suit individual circumstances and preferences, offering flexibility and tax planning advantages.
