The holidays often inspire a spirit of generosity. So, at year end, many people decide to give money or assets to their loved ones.
Over time, lifetime gifts can also be an effective way for wealthy people to minimize their taxable estates. Here are the basic federal tax rules for these transactions.
Beware: Quite a few states impose estate or inheritance tax at a lower threshold than the federal government does. So it's also important to understand the rules in your state to avoid an unexpected tax liability or other unintended consequences of an asset transfer.