Lifetime Gift Strategies refer to financial and estate planning techniques that allow individuals to transfer assets to beneficiaries during their lifetime while minimizing gift tax implications and maximizing future financial benefits for both the giver and receiver.
These strategies involve the use of various gifting methods, such as annual exclusion gifts, which allow individuals to give a certain amount each year without incurring gift tax, and utilizing the lifetime gift tax exemption, which permits larger gifts within specified limits.
For example, as of 2023, an individual can give up to $17,000 per year to any number of recipients without triggering gift taxes. Additionally, individuals may consider strategies like gifting appreciated assets to take advantage of potential tax benefits or setting up trusts to manage the distribution of gifts while providing protection against taxes and creditors.
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