The Internal Revenue Service recently announced the 2015 estate and gift tax limits. The federal estate tax exemption rises to $5.43 million per person, and the annual gift exclusion amount stays at $14,000. With the holiday season approaching, (and if one is fortunate enough to be extraordinarily giving in the form of large sums of money or property) one may ask what is excluded from the taxable gift category to which https://www.irs.gov indicates the following: “1) gifts that are not more than the annual exclusion for the calendar year; 2) tuition or medical expenses paid for someone (the educational and medical exclusions); 3) gifts to one’s spouse; and 4) gifts to a political organization for its use.” Who is responsible for paying gift tax? The IRS indicates that the donor is accountable more often times than not; however, under specific arrangements, the donee may agree to pay the tax instead. The federal estate tax exemption— the amount an individual can leave to heirs without having to pay federal estate tax—will rise to $5.43 million in 2015, up from $5.34 million in 2014. For consultation regarding gift and estate taxes, contact one of our attorneys, including one of our two Certified Elder Law Attorneys, Annemarie Schreiber, Esq. and Diana L. Anderson, Esq., our Certified Public Accountant Joseph J. La Costa, Esq. or Edward J. Dimon, Esq.