Give Today, Not Tomorrow One of the easiest ways to provide for loved ones is by making annual gifts. However, as politicians often do, they put some restrictions on the increases. Unfortunately, gifting limits will probably not rise until 2000 or 2001. Everyone is given this credit by the IRS, and it is usually used for calculating estate taxes. Another concern when gifting is that you give away too much of your estate, not to trigger a tax, but to maintain your lifestyle.
Many people automatically gift, and end up giving too much of their assets to loved ones.
Gifting should always be part of an overall estate plan that takes into account your current needs. Remember, before you write that annual gift check, make sure you double-check with your estate advisor. At the very least, no matter how much you want to give your family, consider setting up a Living Trust. Living Trusts allow you to avoid probate, maintain privacy, and facilitate the transferring of assets. Living Trusts also help married couple's maximize both of their Unified Credits.