Colorado Estate & Gift Tax Attorneys

Helping You Understand Your Estate Options

Colorado does not have a state-level estate tax that can affect your estate and estate plan. It does follow the federal estate tax, though, as well as federal gift taxes.

If you want to protect the value of your estate from certain types of taxes, or you want to gift assets to a loved one without being hit with heavy taxes, you might have some options to explore. Get all the guidance you need by coming to The Harris Law Firm, serving clients across Colorado. You already trust us for all your family law needs, and now you can hand your estate and gift tax cases to our experienced lawyers, too!

For questions about estate and gift taxes that could affect your estate in Colorado, call (303) 622-5502 and request an initial consultation.

What is an Estate or Gift Tax?

When you gift someone valuable assets, the federal Internal Revenue Service (IRS) will likely consider it as a taxable gift.

The IRS can apply its gift tax to all sorts of assets, such as:

• Savings accounts
• Money or cash
• Real estate properties
• Investments
• Vehicles
• Valuable heirlooms

On the other hand, when you pass away and your estate is inherited by one or more loved ones, this transfer can also be seen as a type of gift. For this reason, the overall value and assets of your estate can be met with an estate tax after you pass away, which will reduce what your loved ones can inherit from you.

Federal Gift Tax Exemption

Colorado uses federal gift tax rules, which include the federal gift tax exemption. This exemption allows you to gift assets up to a certain amount before the gifted assets will be taxed.

In 2024, the annual gift tax limit set by federal rules is $18,000 per recipient (but this amount usually changes each year). For example, if you have three children, you can gift each of them $18,000, or a total of $54,000 in gifts. Furthermore, if you are married, you can give gifts as a married couple, which effectively doubles what you can gift. The combined 2024 limit for a married couple is $36,000 per recipient.

Can Some Gifts Avoid Taxes?

The IRS might not attempt to tax certain gifts, including:

• Tuition-related gifts
• Medical expense-related gifts
• Gifts given directly to a spouse
• Gifts to a political organization

Federal Gift Tax Return

If you exceed the federal gift tax exemption annual limit you should file a gift tax return. However, if you are required to file a gift tax, it doesn’t guarantee that you will owe more to the IRS. Depending on the specifics of your situation, you might not have to pay more. Every situation is different, though, so it is recommended that you talk to an attorney from The Harris Law Firm about what might happen if you do gift more than you are legally permitted.

Federal Estate Tax Exemption

Without a state-level estate tax rule, Colorado follows federal estate tax rules, which include the federal estate tax exemption. This exemption allows your estate to avoid taxes after you pass away if it is valued under a certain amount.

In 2024 and 2025, the federal estate tax exemption limit is $13.61 million per individual or $27.22 million for a married couple. If you pass away and your estate is valued under this amount, you will likely not have to worry about how federal estate taxes could impact your beneficiaries. To know for certain, though, you should talk with our lawyers.

For Questions About Gift & Estate Taxes, Call Now

Before you lose assets or finances to gift and estate taxes, learn your options with the help of The Harris Law Firm, serving clients across Colorado. We’re always happy to hear from new and returning clients, so reach out whenever you need us. We can review your estate, estate plan, and assets to look for ways to protect your assets from taxes.

Contact us online or call (303) 622-5502 to request more information about our legal services.