A single person can reduce their taxable estate by use of the $365,000.00 lifetime gift tax
exclusion.

A married couple can reduce their taxable estate by use of the $730,000.00 lifetime gift tax
exclusion ($365,000.00 x 2 = $730.000.00).
Philip McCarthy
Attorney at Law
Proper use of the Gift Tax Exclusion can
allow a person to avoid Estate Taxes of
$365,000.00, or allow a married couple
to avoid Estate Taxes of  $730,000.00.
UTILIZATION GIFT TAX EXCLUSIONS TO REDUCE THE
TAXABLE ESTATE
LONG ANSWER

IT’S BETTER TO GIVE THAN TO PAY TAXES

Suppose that John and Mary’s estate is worth more than $4,000,000.00.

In this case, John and Mary can reduce the amount above that protected by the preservation of
their individual personal exclusions by making gifts during their lifetimes of up to $365,000.00
each ($365,000.00 x 2 = $730,000.00).

By utilizing the gift tax exclusion to reduce the estate tax, John and Mary can avoid estate taxes
on an estate of up to $4,730,000.00.

Even if the gift to one individual in any given year exceeds the $12,000.00, per year limit to an
individual donee, any amount that exceeds the annual per person limit can be carried over into
later years to reduce total tax liability up to the lifetime limit.
For a more detailed analysis of
the tax advantage of utilizing
the Gift Tax Exclusion
contact me.
For a more detailed analysis of
the tax advantage of utilizing
the Gift Tax Exclusion
contact me.