What is a gifting program and how does it work?

A gifting program is a way for people to transfer ownership of their property or assets to another person without paying gift or estate taxes. It is commonly used in estate planning to reduce the amount of taxes that an estate may have to pay. In Washington State, the gifting program is administered by the Washington State Department of Revenue and is based on a specific set of rules and regulations. The gift tax law allows people to give up to $15,000 per year as a gift to one individual without any federal or state tax burden. Any amount that is more than $15,000 per gift must be reported to the Internal Revenue Service (IRS) and may result in a gift tax. In order to make a gift, the giver must be the legal owner of the asset. The gift must be voluntary, made out of love and affection, and of something that has value. If the gift is made within the annual gifting limit, there are no taxes due as long as the giver does not exceed the annual limit for any single year. The gifting program can be used for any number of reasons, from reducing estate taxes to passing on assets to family members. However, it is important to understand all of the rules and regulations that govern gifting before proceeding with any transfer. An experienced estate planning attorney can advise you on your options and help ensure that you are complying with all gift tax laws.

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What is a gifting program and how does it work?

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