Frederick J. Kramer
Attorney and Counselor at Law
Elder Law and Estate Planning
Children’s Gifting Trust
In order to maximize the use of the “annual
exclusion” gifts (ie: up to $11,000 per person per year) to reduce the size of
the collective estate over time. The
alternative to making outright gifts to children is to establish a Gifting
Trust into which you can deposit gifts for each child each year. It does not have to be $11,000 each. You may choose to gift less than that amount
in your own discretion.
This important thing to remember is that what
you gift each year to your children directly or to the Gifting Trust is no
longer part of your taxable estate at death.
Gifting during your lifetime presents an excellent opportunity to avoid
unnecessary estate taxes.