Blog

Financial Word of the Week: Gift tax annual exclusion

  |  Posted by

Financial Word of the Week - gift tax annual exclusion

The gift tax is a transfer tax imposed on any gift you give someone during your lifetime. However, the Internal Revenue Code provides each individual with a gift tax annual exclusion. The annual exclusion is the amount of property one individual may give each year to another individual without incurring any gift tax consequences. This number is adjusted annually for inflation and is currently $14,000 per donor per donee in 2015. “Per donor per donee” means that each individual donor may give $14,000 each to as many individuals as the donor wishes. For example, in 2015, each parent can give to each of their three children $14,000 in gifts, for a total of $ 28,000 per child.

When you click links marked with the “‡” symbol, you will leave UMB’s website and go to websites that are not controlled by or affiliated with UMB. We have provided these links for your convenience. However, we do not endorse or guarantee any products or services you may view on other sites. Other websites may not follow the same privacy policies and security procedures that UMB does, so please review their policies and procedures carefully.


UMB Financial Corporation (Nasdaq: UMBF) is a diversified financial holding company headquartered in Kansas City, Mo., offering complete banking services, payment solutions, asset servicing and institutional investment management to customers. UMB operates banking and wealth management centers throughout Missouri, Illinois, Colorado, Kansas, Oklahoma, Nebraska, Arizona and Texas, as well as two national specialty-lending businesses. Subsidiaries of the holding company include companies that offer services to mutual funds and alternative-investment entities and registered investment advisors that offer equity and fixed income strategies to institutions and individual investors.


Tagged: , , ,