What is a gifting program and how does it work?

A gifting program is a type of estate planning law used in the state of Maryland. It allows an individual to give away assets or monetary gifts to their heirs while still alive. This is often done to reduce the amount of inheritance tax that might be owed later. Gifting programs typically work by setting up a trust, which is a legal entity that holds the gift until it is transferred to the beneficiary. The trust is managed by an appointed trustee, who is responsible for ensuring the gift is given appropriately. The trustee also has the ability to make changes to the trust, such as changing the beneficiary or changing the amount of the gift. The person giving the gift will typically set up a plan or schedule for when they want to give the gifts, and can set up restrictions, such as only allowing the heirs to receive the gifts after a certain age or when they achieve certain milestones. In addition, the person giving the gifts can also take advantage of certain tax advantages. For example, if the gift is given in the form of money, the IRS allows an individual to deduct up to $15,000 from their federal gift tax return each year. This helps to reduce the amount of money owed in taxes when the gift is given. Gifting programs are a great way for individuals to give assets or money to their heirs while still alive. Through a gifting program, an individual can reduce inheritance taxes and even take advantage of certain tax advantages.

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What is a gifting program and how does it work?

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