How Gift Taxes Affect Estate Planning In Florida

When property is gratuitously transferred from one individual to another, it is considered a gift in the eyes of the government. This gift may be subject to the gift tax depending on how much the gift is worth and whether an individual has any of his or her gift tax exemption available. Property that is transferred from one person to another after an individual passes on may be subject to estate tax.

The gift and estate tax exemption for 2015 is $5.43 million and is indexed for inflation. Therefore, an individual would not owe taxes on any amount gifted…