The gifts to the heirs will qualify for the limited partnership and limited marketability discounts, which could push the gifts below the
annual exclusion amount ($14,000 for 2015) or the lifetime exemption amount ($5.
The Tax Court held that the withdrawal rights provided in a trust declaration were not illusory and that therefore a married couple's gifts to the trust were gifts of present interests in property that qualified for the
annual exclusion.
Certain transfers also qualify for an
annual exclusion, which is $14,000 per recipient.
Potential benefactors may not know that they can give up to $14,000 in cash or assets per year (spouses can combine this
annual exclusion to give $28,000) to as many individuals as they want without having to worry about gift or GST tax.
22) It proposes: (1) an exclusion from the gross estate for insurance proceeds on the life of the decedent in limited situations; and (2) an alignment of the section 2503(b) (23)
annual exclusion amount with the section 2514(e) (24) safe harbor for lapsing powers of appointment for purposes of ILITs.
For 2013, an individual may give away an
annual exclusion amount of $14,000 of wealth in any form to another.
That permits leveraging of the
annual exclusion and $5.
And as with
annual exclusion gifts, these gifts are in addition to, and do not reduce, the available $5,000,000 gift exclusion.
11) This determination is made without regard to exclusions from taxable gifts, such as the gift tax
annual exclusion or transfers for education or medical expenses, and without regard to gift splitting and the charitable and marital deductions.
The simple way to do this would be to give cash, but there are estateplanning techniques that allow you to take advantage of this
annual exclusion amount without handing over cash.
had a case where a wealthy widow was giving her children the full $13,000 gift allowed under the
annual exclusion.
2 The gift tax rates were equal to estate tax rates, and there were provisions for both an
annual exclusion and a lifetime exemption.
