Assets Values Depressed? Good News for Gifting.
Right now a lot of us are depressed, or at least our portfolios are. That’s not all bad news. Because some of our assets are reduced in value, we can gift more to our heirs this year without penalty. This is a great time to gift stocks to your heirs, removing them from your estate and possibly eliminating a considerable tax burden.
The maximum gift allowed by the IRS without filing requirements and possible taxes is $12,000 per year per person. If you are married, you and your spouse can combine your gift exclusion and give up to $24,000 to any individual.
With today’s stock prices, consider gifting stock now. You can transfer more shares at today’s low prices than you could a year ago. And if the stock market values return (hope and pray) then the value received by your heirs will be worth more than the exclusion.