Gifting money is a nice thing to do for a friend or family member, but—as the saying goes—no good deed goes unpunished. If you’re not careful, your gift could turn out to be subject to the federal gift tax of up to 40%.
In part one of this series, we covered the annual and lifetime exclusions as well as lifetime exclusion on the first $12.06 million of your estate. We also talked briefly about the Connecticut state gift tax—the only one in the country—and which kinds of gifts are exempt from the tax.
In this second part of the series, we’re going to look at which kinds of gifts are subject to the gift tax, including gifts to minors.