What is the annual gift tax exclusion?
A. The annual gift tax exclusion is an amount that can be given away annually without resulting in gift tax on the transfer. In the year 2009, the annual gift tax exclusion amount is $13,000 per recipient. There is no limit on the number of recipients to which qualifying gifts can be made. However, if you are elderly or disabled, be very careful about making gifts of any amount, because all gifts made in the five years prior to applying for Medicaid will be counted against you and will result in a period of ineligibility for Medicaid.
