Like it or not the holidays are here. The Turkey has been eaten and the leftovers have been made into sandwiches, chili and whatever else the Food Network has suggested we do with it. In just a few short weeks, Christmas will be here and we will be planning for New Year's Eve.

Since we are in the season of giving, it's time to review some basic information regarding gifting. That's assuming that the "market adjustment" hasn't eliminated gifts this year.

First, remember the $12,000 gift trigger. As most of you know, you can make up to $12,000 to any individual without having to report the gift to the IRS. That figure is not a limit, but rather a triggering event. If you make gifts in excess of $12,000 , you must file a gift tax return and report the gift. You have a lifetime exclusion of 1 million dollars, so if you make a gift in excess of $12,000 , you may still be able to avoid gift tax.

Also, remember that the $12,000 amount is cumulative for the whole year. If you gave your daughter $10,000 for her birthday and plan on giving her $10,000 for Christmas, that's $20,000 and you need to file a gift tax return. There is no such thing as a "Christmas Gift Exception."

No one should be on the IRS's business end for doing a good thing. File the return. By the way, the annual exclusion increases to $13,000 on Jan. 1.

If you are planning on making gifts of securities such as stock, call your broker immediately. You aren't the only one thinking about parting with some of your BP stock this year. Brokers and transfer agents get really busy at the end of the year. Throw in the stock market situation and you could find that gifting stock this year may not be as easy as it was in past years. Begin the process early so that it will be completed by the end of the year. If it's not done by end of the year, it's not a 2008 gift.

If you are giving a sizeable sum to a minor, consider using an Indiana Transfer to Minor's Act Account (IUTMA). Rather than giving the money to the minor, you transfer the money to a responsible adult as custodian. The custodian can care for the money and dole it out when appropriate. The minor will get the money when he or she turns 21. IUTMA puts some one between the 16-year-old and a pile of money. If you give the money to the minor directly, don't be surprised when your grandson shows you the piercing you bought him for Christmas. Nothing says Christmas like an eyebrow ring.

If the loved one is planning for college, consider making a gift to a 529 plan. A 529 plan is a qualified education savings plan that offers tax benefits on the saved money. Indiana offers a great plan that provides you with a tax credit for a portion of the gift. Just think, you get the warm and fuzzies from making the gift and you get a tax credit. Now that truly is the perfect gift.

No question about it, this has been a rough year for a lot of us, and making substantial gifts may not be high on your list of goals. However, if you are planning on gifting this year, be smart about it. With a little planning, the holiday season may go a little smoother for you.

Opinions expressed solely are those of the writer. Christopher W. Yugo is a member of the Indiana Bar and a vice president and senior trust Officer for First National Bank's Trust Department. Address questions to Yugo in care of The Times, 601 W. 45th Ave., Munster, IN, 46321. Yugo's information is meant to be general in nature. Specific legal, tax, or insurance questions should be referred to your attorney, accountant or estate-planning specialist.