Use the $10,000 annual gift tax exclusion.(tax planning)

A way to provide significant tax savings.

While many taxpayers know about the $10,000 annual gift tax exclusion, they do not realize it can be one of the most effective techniques available for providing substantial long-term tax savings. In addition to lowering current taxes, it can be used to move assets out of a taxable estate on a discounted basis and to remove future value from a taxpayer's estate.

Annual exclusion amount. Taxpayers may make annual gifts of up to $10,000 per donee, with no limit on the number or relationship of donees. The gift must be of a "present interest in property," which means an unrestricted right to immediately use or enjoy the …