Legal Question in Wills and Trusts in Texas

Re: Money gifts to family members

For calendar year 2007, the first $12,000 of gifts to any person (other than gifts of future interests in property) are not included in the total amount of taxable gifts made during that year.

For calendar year 2007, the first $125,000 of gifts to a spouse who is not a citizen of the United States (other than gifts of future interests in property) are not included in the total amount of taxable gifts made during that year.

Re: Money gifts to family members

The person who receives the gift does not have to pay the gift tax - the person who gives the gift pays the gift tax.

This year, a person can give $12,000.00 to each person per year, and not have to report the gifts to the IRS or owe any gift tax. These gifts can be made to any people, not just family members.

In addition, each person has a $1,000,000.00 (one million dollar) lifetime gift tax exclusion. You can give up to $1,000,000.00 away during your life, over and above any $12,000.00 annual gifts, and still not owe gift tax. The gifts over and above the $12,000.00 annual gifts would need to be reported to the IRS, however.

All of the numbers I have typed in this answer are likely to change in the future.