Californians making gifts often believe the federal gift tax is paid by the recipient/beneficiary. Unfortunately, it is the one making the gift who pays the tax. Tax free gifts are possible, however.
An estate planning attorney in Florida, David M. Goldman, has a good article on the taxation of gifts and how to make tax free gifts. Those of us living in Los Angeles County, Orange County, Santa Barbara County, Ventura County and throughout California come within the rules explained in Mr. Goldman’s article.
To discuss tax free gifts, taxable but tax efficient gifts or other estate planning topics, please call Mitchell A. Port, an estate planning attorney, at (310) 559-5259.