• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer

Parman & Easterday

Oklahoma Estate Planning Attorneys

Call Now: (405) 843-6100

Attend an Education Program-OK
  • Home
  • Our Firm
    • About Our Firm
    • Attorney and Staff Profiles
    • What Our Clients Say
  • Estate Planning
    • Asset Protection
    • Estate and Gift Tax Figures
    • Estate Planning Services
    • Family-Owned Businesses & Farms
    • Financial Planning Assistance
    • IRA and Retirement Planning
    • Legacy Planning
    • LGBTQ Estate Planning
    • Pet Planning
    • Powers of Attorney
    • Probate
    • SECURE Act
    • Special Needs Planning
    • Trust Administration and Probate
    • Young Families
  • Elder Law
    • Coping With Alzheimer’s
    • Elder Law
    • Emergency Medicaid
    • Guardianship & Conservatorship
    • Hospice Care
    • Medicaid Planning
    • Veteran’s Benefits
  • Resources
    • Asset Protection Worksheet
    • DocuBank
    • Elder Law
      • Elder Law & Medicaid Definitions
      • Elder Law Reports
      • Elder Law Resources
        • Edmond Elder Law
        • Oklahoma City Elder Law
        • Overland Park Elder Law
        • Yukon Elder Law
      • Medicaid
      • Nursing Home Resources
    • Estate Planning
      • An Overview of Estate and Gift Taxes
      • Estate Planning Checkup
      • Estate Planning Definitions
      • Estate Planning Reports
        • Advanced Estate Planning
        • Basic Estate Planning
        • Estate Planning for Niches
        • Trust Administration
      • Incapacity Planning Definitions
      • Is Your Estate Plan Outdated?
      • Top 10 Estate and Legacy Planning Techniques
    • Free Estate Planning Worksheet
    • Frequently Asked Questions
      • Alzheimer’s FAQs
      • Asset Protection Planning
      • Estate Planning
      • Elder Law
      • Frequently Asked Questions for Families Without an Estate Plan
      • Inheritance Planning for Minors
      • Legacy Wealth Planning
      • LGBTQ Estate Planning
      • Medicaid Planning
      • Nursing Home Asset Protection
      • Probate
      • Trust Administration
      • Trust Administration & Probate
      • Wills and Trusts
    • Newsletters
    • Probate and Trust Administration
      • Bereavement Resources
      • How to Know if You Need Extra Help With Your Grieving
      • Loss of a Loved One
      • Probate Checklist
      • The Mourner’s Bill of Rights
      • Things You Need To Do When a Loved One Passes Away With a Trust
      • Things You Need To Do When a Loved One Passes Away With a Will
      • Trust Administration & Probate Definitions
    • Probate Resources
      • Midwest City Probate
      • Moore Probate
      • Oklahoma City Probate
      • Overland Park Probate
    • Published Books
    • Pre Consultation Form
  • Communities We Serve
    • Edmond
    • Midwest City
    • Moore
    • Norman
    • Oklahoma City
    • Yukon
  • Reviews
    • Our Reviews
    • Review Us
  • BLOG
  • Contact Us
Home » Guardianship » Can I Give Tax-Free Gifts to My Children?

Can I Give Tax-Free Gifts to My Children?

February 21, 2014 by Larry Parman, Attorney at Law

You may be surprised to hear that the gifts that you give are technically taxable. The reason why you are not faced with a tax bill every time that you give someone a birthday gift is because there are exclusions.

Let’s take a look at these gift tax exclusions.

Annual Gift Tax Exclusion

There is an annual per person gift tax exclusion. The amount of this exclusion is $14,000 at the time of this writing in 2014.

You can give as much as $14,000 per person to any number of gift recipients within a calendar year free of the federal gift tax.

Those who are exposed to the federal estate tax could choose to use this gift tax exclusion to give gifts while they are living to gain estate tax efficiency.

It should be noted that you do not have to use your gift tax exclusion to give gifts to your spouse. There is an unlimited marital deduction. You can give any amount of money to your spouse free of transfer taxes.

Unified Lifetime Gift and Estate Tax Exclusion

In addition to the annual gift tax exclusion, there is a unified lifetime gift and estate tax exclusion. At the present time the amount of this exclusion is $5.34 million.

You can transfer up to $5.34 million free of taxation. This would include transfers that take place after you pass away, and transfers that are initiated while you are living.

To be clear, this exclusion exists apart from the annual lifetime exclusion. To explain how they interface, let’s look at a simple example.

Suppose you give a $14,000 gift to your son on February 1st. You can give this gift tax-free using the annual gift tax exclusion.

Later on in the year you decide to give your son $1 million to buy a home. You have already used your $14,000 per person, per year annual exclusion. However, you could use a portion of your unified lifetime exclusion to give this gift tax-free.

You would then have $4.34 million left to apply to future gifts and the estate that you will be passing on to your heirs.

Educational & Medical Gift Giving

There is an educational gift tax exemption. You can pay school tuition for students without incurring any gift tax liability. This is a tuition only exemption; you cannot use it to pay for books, fees, and living expenses. It should also be noted that you must pay the institution directly. You can’t give the money to the student tax-free.

It is also possible to pay medical bills for others without facing a gift tax levy. There is no limit to the amount that you can pay, and the medical exemption extends to the purchase of health care insurance.

Blaine Peterson
Author, Attorney
Parman & Easterday

  • Author
  • Recent Posts
Larry Parman, Attorney at Law
Larry Parman, Attorney at Law
Founder and Owner at Parman & Easterday
After helping his own family deal with a lengthy probate and the IRS following his father’s untimely death in a farm accident, Larry Parman made a decision to help families create effective estate plans designed to reduce taxes, minimize legal interference with the transfer of assets to one’s heirs, and protect his clients’ assets from predators and creditors.
Larry Parman, Attorney at Law
Latest posts by Larry Parman, Attorney at Law (see all)
  • Assert Your Choices to Prevent a Guardianship - May 26, 2022
  • Will My Family Pay Inheritance Taxes? - May 24, 2022
  • Special Needs Planning: Life Enhancements With No Loss of Benefits - May 19, 2022

Filed Under: Guardianship Tagged With: Charitable Remainder Unitrust, Intestacy, veteran claims

Other Articles You May Find Useful

incapacity planning
Take Proactive Steps to Prevent a Guardianship
Parman & Easterday
Estate Planning For Domestic Partners
Overland Park estate planning attorney
Are Your Assets In Harm’s Way?
overland park probate attorneys
Understanding Guardianship Proceedings in Probate Court
Parman & Easterday
How Does a Court Choose a Guardian or Conservator?
Parman & Easterday
Guardians, Conservators, and More – What Does a Guardian/Conservator do?

Primary Sidebar

Parman & Easterday, LLP

DOWNLOAD OUR FREE ESTATE PLANNING CHECKLIST

SUBSCRIBE TO OUR BLOG

Follow Us

  • Facebook
  • LinkedIn
  • Twitter
  • YouTube

Where We Are

OKLAHOMA CITY, OK
13913 Quail Pointe Drive, Suite B
Oklahoma City, OK 73134
Phone: (405) 843-6100
Fax: (405) 917-7018

MAP

parman_sidbr_map

Office Hours

Monday9:00 AM - 5:30 PM
Tuesday9:00 AM - 5:30 PM
Wednesday9:00 AM - 5:30 PM
Thursday9:00 AM - 5:30 PM
Friday9:00 AM - 12:00 PM

Footer

footer-logo

The information on this Oklahoma Law Firm website is for general information purposes only. Nothing on this or associated pages, documents, comments, answers, emails, or other communications should be taken as legal advice for any individual case or situation. This information on this website is not intended to create, and receipt or viewing of this information does not constitute, an attorney-client relationship.

Privacy Policy | Contact Us | Disclaimer | Site Map | Powered by American Academy of Estate Planning Attorneys


© 2022 American Academy of Estate Planning Attorneys, Inc.
  • Facebook
  • LinkedIn
  • Twitter
  • YouTube