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Gifts, Estate Planning and Medicaid Planning

The IRS recently enacted revenue procedure 2015-53 that states that “[f]or calendar year 2016, the first $14,000 of gifts to any person (other than gifts of future interests in property) are not included in the total amount of taxable gifts under § 2503 made during that year.”

What this plainly means is that an individual can give to any other individual total gifts in an amount up to $14,000.00 in calendar year 2016 without having to file a gift tax return. If Bill Gates wanted to he could give 100 people each $14,000.00 (a total of $1,400,000.00) and he would not have to file a gift tax return.

Note that the individual does not have to file a GIFT tax return. Also note that the gift tax has nothing to do with income tax. Further note that the annual exclusion from the gift tax has nothing to do with gifts in the context of Medicaid planning and look back period.

More on this subject in my next posting ….

Aaron E. Futterman, CPA, Esq. is a partner in the law firm of Futterman & Lanza, LLP with offices in Smithtown, NY and clients throughout Suffolk, Nassau, New York City, Westchester and Rockland Counties. He concentrates his practice to Elder Law, Medicaid Planning, Medicaid Applications, Estate Planning, Probate, Estate Taxes, and Estate Administration.nza, LLP with offices in Smithtown, NY and clients throughout Suffolk, Nassau, New York City, Westchester and Rockland Counties. He concentrates his practice to Elder Law, Medicaid Planning, Medicaid Applications, Estate Planning, Probate, Estate Taxes, and Estate Administration.

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