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 West Virginia Declaration of Gift of Cash over Period of Years with Splitting of Gift with Spouse is a legal document that outlines the process of gifting cash over a specified time frame while splitting the gift with a spouse. This declaration is significant for individuals who want to transfer a significant amount of cash to a recipient while also involving their spouse in the gift-sharing process. By drafting a West Virginia Declaration of Gift of Cash over Period of Years with Splitting of Gift with Spouse, individuals can ensure that their intended gift complies with the state's regulations and that their spouse has a legal share in the gift. This declaration provides a framework for distributing the funds, taking into account the desires of the gifting party and their spouse. There are a few variations of the West Virginia Declaration of Gift of Cash over Period of Years with Splitting of Gift with Spouse, which include: 1. Individualized Gifting: This type of declaration allows the gifting party to specify the amount of cash they wish to gift over a period of years, along with the percentage of the gift that will be shared with their spouse. With this type of declaration, the gifting party has complete control over the gifting schedule and the division of the gift with the spouse. 2. Specific Time Frame: In this variation, the declaration outlines a specific time frame in which the gifting will occur. For example, the gifting party may choose to give a certain amount of cash annually over a period of five years, with the gift split equally between the recipient and their spouse each year. 3. Gradual Increase of Gift: Another option for a West Virginia Declaration of Gift of Cash over Period of Years with Splitting of Gift with Spouse is to include a provision that gradually increases the gift amount over the designated time period. This allows the gifting party to start with a smaller gift and gradually increase it each year, while still splitting the gift with their spouse. 4. Lump Sum with Present Interest: This variation involves giving a lump sum of cash upfront, and the spouse immediately receiving their share of the gift. The declaration will specify the exact amount to be given and how it will be divided between the recipient and the spouse. 5. Charitable Giving: The West Virginia Declaration of Gift of Cash over Period of Years with Splitting of Gift with Spouse can also be used for charitable giving. With this type of declaration, individuals can set aside a specific amount of cash to be donated to charity over a period of years, while still involving their spouse in the gift-sharing process. Ultimately, the West Virginia Declaration of Gift of Cash over Period of Years with Splitting of Gift with Spouse provides a legal framework for individuals to facilitate the gifting of cash over a specified time frame while ensuring their spouse receives their fair share. It offers various options to customize the gift-giving process according to the preferences and circumstances of the gifting party and their spouse.
