TIL that the IRS only allows you to "gift" $15k to any given person per year without paying taxes. So I guess giving away everything you own would be quite a taxable event
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An important part of estate planning is the slow dribble of money to your heirs prior to your death in order to set yourself up with cheaper healthcare or to avoid the double taxation of posthumous gifts.
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Yes I believe it's 11.58 million total over a lifetime now, so hardly a restriction. But still, who knew giving gifts could be expensive?
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what's the cost? there's paperwork, but no tax cost if you do it right
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sorry typo... lifetime exclusion is 11.2m not 2m. So excess over 15k gets reported, but not taxed while you're under the 11.2m lifetime limit for the specific giftee. I think you could give away everything without any tax in a single year, if you gave a bunch of people 11.2m each
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Oh I thought it was 11M for everyone, ever. If not then that's not much of a restriction
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Whoa, you researched bureaucratic minutia!?! Mind blown. Yeah, 15k is like a reporting-free safe harbor. You can give the lifetime tax-free max at any time. Was surprised to learn this when researching 529s. They fall under same laws.
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The 15k limit has come up in my finances a couple of times in the last few years. I’ve used it.
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