Gifting money

Warm fuzzies for having helped a loved one and, hopefully, a timely, gushing thank you note. There are no tax benefits, and if the gift exceeds the annual exemption (either $12,000 or $12,500 in 2007), the donor has a gift tax filing requirement.

-- Phil Marti Clarksburg, MD

Aside from love and affection it reduces his taxable estate. If someone has a large estate a gift of $12,000 could reduce the amount of estate taxes by $4,000 or even $6,000, leaving a net saving to the family. Stu

Tax-wise? Nothing. Other-wise? Everybody's different, it all depends on the donor and what makes that person happy.

Getting it out of your estate to save on taxes, or to prepare to get medicaid 5 year's hence (more or less). To help the family member whom you presumably love.

Because giving is better than receiving. (that one is a stretch) JOE

1. Systematic gifting may reduce probate costs and reduce or even income taxes and the death tax on wealth.
2. Gifts are decided while alive and therefore not subject to creditors and/or will dispute at death.
3. Gifts allow the donor to see the donee enjoy the gift while he/she is still alive.
4. A gift is completely private within the confines of those involved in the gifting process.

IMO, none. A giver should give money only because of he wants to increase happiness for the donee. What other reason could there be? Maybe to make the donee beholden to him? To increase the giver's stature in the eyes of the donee? Christian charity?

ChEAr$, Harlan Lunsford, EA n LA

It gets the money out of their estate, potentially saving estate tax. Other than that, any benefit would be purely emotional. Phoebe :)

Nothing

Missy Doyle