Core Points - The gift tax allows an annual exemption of $19,000 per donor, per recipient in 2025, enabling individuals to give this amount without reporting to the IRS [1] - The gift and estate tax applies to unilateral transfers, where the donor pays the tax, and it is a progressive tax based on the transfer size [2][5] - The lifetime exemption for gifts and estates is set at $13.99 million in 2025, applicable per donor for all giving combined [7] - Joint ownership of assets does not eliminate potential gift or estate taxes, and while it can avoid probate, it does not serve as a tax shelter [12][19] Gift and Estate Tax Details - The annual exemption does not apply to estates, meaning the estate does not benefit from this exemption when passed to heirs [6] - If a gift exceeds the lifetime exemption and applicable annual exemption, taxes will be owed [10] - For example, if $13 million in reportable gifts have been given, and the estate is worth $5 million, estate taxes will apply to the amount exceeding the remaining lifetime exemption [11] Joint Ownership Implications - Adding someone as a joint owner can trigger gift tax implications if the account is used by the new owner [16] - The value of the joint account may still be considered part of the original owner's estate for tax purposes upon their death [17] - While joint ownership can facilitate financial management and avoid probate, it does not provide a tax advantage [18]