Your estate tax burden can be reduced by giving gifts to your heirs prior to your death.This has the effect of reducing the value of your estate and thus lowering your tax obligation.As of 2011,each spouse can give up to $________ each year to ________.

Question

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As of 2011, each spouse can give up to $14,000 each year to as many people as they like without incurring gift tax. This is known as the annual gift tax exclusion. By utilizing this exclusion, married couples can potentially give up to $28,000 each year to each of their children and grandchildren without any gift tax implications, thus reducing the value of their estate and lowering their potential estate tax burden.

Your Estate Tax Burden Can Be Reduced by Giving Gifts