Archive for the ‘Estate Planning Taxes’ Category

When Is a Gift Taxed?

Gifts under $13,000 (2011 figure) per year/per person plus any payments made directly for tuition to an educational institution or for medical expenses  are excluded from any calculation of gift tax.

For taxable gifts over the tax free amount, a federal gift tax return must be filed (Form 709) by April 15 of the year following the year the gift was made.

Gift tax is only payable if and when an individual’s lifetime taxable gifts exceed the gift tax exclusion amount, currently $5M.

Coping With The Loss of A Spouse

The passing of a beloved spouse is an awful thing.  The emotional loss coupled with the disappearance of the day to day companionship leaves the surviving spouse trying to fill a cavernous space.  In her June 15, 2010 New York Times column, Jane E. Brody  writes of the challenging job a surviving spouse has in making an emotional adjustment to the loss.  I think you will find the column interesting and you can access it at http://www.nytimes.com/2010/06/15/health/15brod.html. Ms. Brody not only addresses the difficulties of the emotional issues surrounding the loss of a spouse but  she concludes her column by remarking on the concerns many widows and widowers have in regard to what will happen as they age and perhaps grow ill and require long-term care. This is a real concern.  One way to assuage these fears is to learn about what the options are in regard to receiving long-term care and how to pay for long-term care.