Gifting and Gift Tax in Colorado

Gifting can be an important part of your Estate Plan. Outright gifts can be used strategically to reduce estate taxes, avoid probate or plan for Medicaid eligibility. Gifts can be given to individuals or to organizations.

Federal tax law generally allows each individual to give – subject to certain restrictions — up to $12,000 per year to anyone without paying income tax or estate/gift taxes. You can also make – again, subject to certain restrictions — tax-free direct payments of tuition and medical expenses beyond the $12,000 limit.

If you are trying to become Medicaid eligible, there are additional restrictions to gifting. Our Protocols affiliate can advise you on how gifting affects your eligibility for public benefits. Our litigators can help if your gifting plan is challenged or contested.

Charitable giving plans allow you to benefit religious, educational and other charitable causes while at the same time meeting your Estate Plan goals. Tools include outright gifts of money or stock as well as charitable remainder trusts, charitable lead trusts and the creation of private family foundations.

We work closely with you and your family, public and private benefits providers, employers, business partners, professional services providers, fiduciaries and charitable organizations to make sure that your gifts – as an important component of your Estate Plan – meet your unique personal and financial objectives.

Attorneys:

Robert L. Sagrillo |Henry. M. kohnlein

info@sagrillokohnlein.com