Report Those Gifts

of them never file the The unified gift and required 709. I know estate tax exemption for of many cases where an individual is currentthe parent just goes ly $5 million. Individuals down to the neighmay pass that much, free borhood attorney of estate tax and gift tax, and asks for a quitduring their lifetimes. claim deed. Generally, Under the current law, the attorney does as most of us dont have asked, not discussing taxable estates. the tax or estate planBut hold on. Just because your estate is not Joseph S. Karp, C.E.L.A. ning ramifications or the 709 requirement. currently taxable doesnt According to a recent report in mean it wont be when you pass away. You dont know when that will Kiplingers, 60% to 90% of taxpayers happen. You dont know what your who transfer real property to family asset situation will be at that point, members for little or no consideraeither. And you surely dont know tion do not file the required Form what the tax code will be. The pres- 709. So the revenue-strapped federent estate tax law is due to expire at al government is now cracking down, the end of 2012. Its always been examining land transfer records to a political football, so anything is track these gifts, and auditing taxpayers who have not complied with possible. the 709 requirement. If you make a gift over Listen to Joe Karp and Anita Finley $13,000 to any one person on Saturday, August 20 from 7:30-8:00 AM within any given year, but on WSBR 740AM and on the dont report it, you could Internet at www.wsbrradio.com. be creating a big tax mess Also, remember we are dealing for your heirs. Consult with an experwith the Unified Gift and Estate Tax ienced estate planning attorney to Exemption. Any gifts you make over determine how to effectively make $13,000 to any one individual in any gifts. He or your CPA can also advise one year will be deducted from your you about the steps you must take if lifetime exemption. The IRS wants to youve already made such a gift but know about any such gifts, because not reported it. they could push your estate into taxJoseph S. Karp is a nationally certified able territory. The IRS is not about to and Florida Bar-certified elder law attorney let go of that potential revenue. You (C.E.L.A.) specializing in the practice of are required to report any such gift Trusts, Estates and Elder Law. His offices are located at 2500 Quantum on a Form 709, regardless of whether Lakes Drive, Boynton Beach (561) 752-4550; your estate is currently taxable. If you 2875 PGA Blvd., Palm Beach Gardens havent used up your full lifetime (561) 625-1100; and 1100 SW St. Lucie W. exemption, currently $5 million, Blvd., Port St. Lucie (772) 343-8411. filing the 709 is merely informationToll-free from anywhere: 800-893-9911. al; neither you nor the recipient will E-mail: KLF@Karplaw.com or website owe tax on this gift. www.karplaw.com. One of the transfers seniors often Read The Florida Elder Law and Estate make to adult children is real prop- Planning Blog at erty. And according to the IRS, many www.karplaw.blogspot.com.

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