The 2016 gift tax annual exclusion allows you to give up to $14,000 per recipient tax-free without using up any of your lifetime gift tax exemption. The assets, including any future appreciation, are removed from your taxable estate. But you need to use your 2016 exclusion by Dec. 31 or you’ll lose it. While the President-elect and Republicans in Congress have indicated that they want to repeal the estate tax, it’s uncertain exactly what tax law changes will be passed. So if you have a large estate, 2016 annual exclusion gifts are still worth considering.
