Issue 2 is that only some of the $35,0007 premium may qualify for the
annual exclusion, and the balance will consume some of the mother's lifetime gifting exclusion amount.
If you miss making $14,000
annual exclusion gifts in 2015, you can't double up with a $28,000 exclusion gift in 2016.
On their separate Forms 709, United States Gift (and Generation-Skipping Transfer) Tax Return, each taxpayer claimed a $12,000
annual exclusion for a gift of a present interest to each of the 60 beneficiaries.
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.
If the grantor wishes to make other
annual exclusion cash gift directly to her heirs, then she can offset the $65,000 annual premium gifts by allocating some of the $5.
In 2002, for the first time, the
annual exclusion was adjusted upward for cost-of-living increases, from $10,000 in 2001 to $11,000 in 2002, reflecting the level of inflation.
Gifts of a present interest less than the
annual exclusion need riot be reported on Form 709, but the donor should keep a record of the valuation of such gifts in case of IRS inquires.
ISSUE: Valuing interests in a small business can present a significant challenge to an owner looking to take advantage of today's high gift tax
annual exclusion rates--and frequent IRS challenges to professional appraisals has made valuing these interests even more uncertain.
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.
2 The gift tax rates were equal to estate tax rates, and there were provisions for both an
annual exclusion and a lifetime exemption.
