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 Wisconsin Declaration of Gift of Cash over Period of Years with Splitting of Gift with Spouse is a legal document that allows an individual to make multiple cash gifts over a period of time while also splitting the gift with their spouse. This declaration ensures that the donor's intentions and preferences for the cash gifts are clearly defined and legally binding. The Wisconsin Declaration of Gift of Cash over Period of Years with Splitting of Gift with Spouse is generally used for estate planning purposes, providing individuals with a strategic way to distribute their wealth and financial assets. By splitting the gift with their spouse, the donor can potentially reduce their overall tax liability, ensuring that their financial resources are efficiently allocated. There are different types of Wisconsin Declarations of Gift of Cash over Period of Years with Splitting of Gift with Spouse, each serving specific purposes. Some common variations of this declaration include: 1. Irrevocable Gift of Cash over Period of Years with Splitting of Gift with Spouse: This type of declaration ensures that the cash gifts made by the donor are set in stone and cannot be revoked or altered once executed. It provides a sense of security and permanence to the donor and their spouse. 2. Revocable Gift of Cash over Period of Years with Splitting of Gift with Spouse: In contrast to the irrevocable declaration, the revocable declaration allows the donor to modify or revoke the cash gifts at any time while still splitting them with their spouse. This provides greater flexibility and allows the donor to adapt to changing circumstances. 3. Testamentary Gift of Cash over Period of Years with Splitting of Gift with Spouse: This type of declaration is specifically designed to be included in a last will and testament. It outlines the donor's intentions for gifting cash over a specified period, even after their passing, and ensures that the distribution is shared with their spouse as per their wishes. It is important to consult with an experienced attorney or legal professional when drafting a Wisconsin Declaration of Gift of Cash over Period of Years with Splitting of Gift with Spouse. They can guide individuals through the process, ensuring all legal requirements are met and the document accurately reflects the donor's intentions.
