What is a gifting program and how does it work?

A gifting program is an estate planning tool that can be used to reduce the size of an estate and minimize the taxes owed upon death. In Nebraska, gifting programs are regulated by state law. The program works by allowing an individual to give away a certain amount of money or property each year without incurring gift taxes. Federal law limits the amount of money or property that can be gifted without being taxed at $15,000 per recipient per year. This amount is indexed for inflation and changes each year. In Nebraska, gifting programs can be used to transfer property to family members, friends, or to a trust. Gifts can be made in cash, securities, real estate, and other forms of tangible and intangible property. The program can be set up as an annual gift to one person or it can be spread among multiple people. Gifting programs are usually set up with the help of an attorney who specializes in estate planning. An attorney can help advise you on the best gifting program for your situation and draft any necessary paperwork. Gifting programs can be an effective way to reduce the size of an estate and minimize the taxes owed upon death. However, it is important to consult with an attorney to make sure you understand the rules and regulations before making any gifts.

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What is a gifting program and how does it work?

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