Gift Tax Law

Gift Tax Law is part of the Estate and Gift Tax framework, which ensures that significant gifts given during a person's life are taxed appropriately. When someone gives a gift over a certain value, they may owe taxes on that amount. Each year, individuals can give a set amount (the annual exclusion) without triggering tax. Additionally, there's a lifetime exemption that allows individuals to gift a larger total amount over their lifetime before taxes apply. The goal is to prevent evasion of estate taxes by transferring wealth before death. Proper planning can minimize tax liabilities.