Gift and Estate Taxes are Essential for Transferring Funds

What do you think of the estate and gift taxes? I agree with estate and gift taxes, as it is an option to transfer fund with protections to your family or decedents. Individuals can gift up to $15,000 or less annually to children and grandchild to reduce tax burden while they are still alive. Under IRC §2503(b) (1) and (2), up to $15,000 per year in gifts to an individual is excluded from gift taxation. Estate taxes are taxed after death and provides the estates of decedents survived by a spouse as they may elect to pass any of the decedent’s unused exemption to the surviving spouse. Some consideration for spousal exemption include that every individual person may transfer assets at death valued in the aggregate at $11.58 million ($11.4 million in 2019) free from estate tax. The surviving spouse can leverage unused exemptions to reduce tax burden. Individuals can prepay medical expenses or funeral costs can favorably impact tax burden. (Carter, 2022)
Individuals can leverage medical expenses and tuition expenses as an exemption not considered a gift. Medical payments include medical insurance, prescription drug, or payment directly to the care provider. Tuition can includes payment directly to an educational institution at any grade level, college-level, higher education, and private-school for younger grades. The payment must be pay directly to the medical or educational institute to qualify for the exemption. (Carter, 2022)