Federal Gift Tax Exclusion for 2012

According to materials for the State Bar of Wisconsin Annual Estate Planning Update, the federal gift tax exclusion for 2012 will remain at $13,000. What does that mean? It means that anyone person can give another person $13,000 that year without triggering the federal gift tax.

Remember, a gift may not be obvious to you. The following are examples of scenarios that may trigger the gift tax:

• adding a person's name to your bank accounts;
• adding a person's name to the deed to your home; and
• addition a person's name to the deed to your vacation property.

Should this reflect your life, it is wise to consult with an attorney and or CPA to discuss possible tax implications.