Individuals can give up to $19,000 annually to each recipient without reporting to the IRS. A total of $13.61 million can be given tax-free throughout a lifetime. Gifts exceeding the annual exclusion must be reported. Consulting a financial advisor can help navigate complex gift tax laws and estate planning strategies.

The gift tax applies to unilateral transfers or exchanges below full value. Low-value transfers, low-interest loans, and certain direct payments are also taxed. The IRS exempts direct tuition and medical payments. Lawyers use examples like the “peppercorn promise” to explain low-value transfers.

The annual exclusion allows tax-free gifts to recipients each year. The lifetime exclusion is $13.61 million. Exceeding the exclusion triggers gift taxes. Reporting gifts exceeding the annual exclusion is required on Form 709. The lifetime exclusion is a shared limit for gifts and estates.

Gift-splitting allows married couples to double their annual and lifetime exclusions. Each spouse can give up to $19,000 tax-free to recipients. Form 709 must be filed when gift-splitting. The lifetime exclusion is $13.61 million per spouse. Tax-free gifts can total $27.22 million for a married couple.

The gift and estate tax apply to unilateral transfers and post-mortem transfers, respectively. A financial advisor can help build a comprehensive retirement plan. Emergency funds should be kept liquid in high-interest accounts. Financial advisors can assist in growing businesses and connecting with leads.

Read more at Yahoo Finance: How Much Can I Gift My Son and Daughter-in-Law Without Paying Taxes?