What is a gifting program and how does it work?

A gifting program is an estate planning tool used in Florida to reduce the taxable value of an estate. It involves transferring assets from an estate to individuals or entities while the person is alive. This is beneficial because it reduces the amount of taxes owed after death. Gifting programs can be set up in several different ways. The most common is to have a trust established in which the person sets aside a certain amount of money to be given away to individuals or entities of their choice. This is usually done through the creation of gift certificates or other documents that designate who the money is for and how it will be used. The assets that are gifted must be included in the estate’s tax return. They must also meet certain requirements such as being gifted in a timely manner, having records of the gifts, and having the gifts be traceable. It is important to discuss gifting with an estate planning attorney before proceeding. Gifting is often used as a way to reduce taxes, transfer assets, and even potentially avoid probate costs. It is important to note, however, that gifting can also have tax implications. It is best to speak to an estate planning attorney to determine the best plan of action for a gifting program.

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What is a gifting program and how does it work?

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