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Understanding to share your wealth with loved ones while they are still alive.

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Only a handful of prudent taxpayers make use of a basic but powerful strategy: Leveraging the IRS gift allowance.

For 2021, the annual gift tax exemption will stay at $15,000 per recipient. This means you can give up to $15,000 to as many people as you want during the coming year without any of it being subject to a gift tax. The gift tax is imposed by the IRS if you transfer money or property to another person without receiving at least equal value in return. This could apply to parents giving money to their children, the gifting of property such as a house or a car, or any other transfer. There is also a lifetime exclusion of $11.7 million. More details here: https://smartasset.com/retirement/gift-tax-limits