allows a spouse to increase his or her total annual gift tax exemption by combining both spouses' exemption amount.
Election--The regulations provide great detail describing how mitigation operates where spouses have elected to gift split under I.
citizenship and the other does not, including marital deduction and gift splitting
strategies with particular reference to UK spouses.
David Pratt of Pratt & Bucher, LLP, spoke at the Greater Fort Lauderdale Tax Council meeting; his speech was entitled "The Anatomy of the New Federal Gift Tax Return, Including a Review of the Gift Tax Statute of Limitations, Gift Splitting
Provisions and Proposed Regulations Regarding the Election out of the Automatic Allocation of Generation-Skipping Transfer Tax Exemption.
8 TABLE 2 Contrast of the Availability of Wealth Transfer Strategies by Married and Unmarried Couples (4) WEALTH TRANSFER STRATEGY MARRIED UNMARRIED Lifetime Exemption $1 M Unified Tax Credit X X Unlimited Transfer (Marital Deduction) X Annual Exclusion of $11,000 per Recipient X X Gift Splitting
X Intestacy Rules Favoring Partner/Spouse X Community Property X Living Trust X X Tax Free Gift of Income Interest to Spouse via QTIP X Unlimited Charitable Deduction X X Charitable Donations Through a CRAT X X Favourable Social Security and Qualified Plan Distributions After Death of Spouse/Partner X
It covers annual gift tax exclusion, exclusion for payment of tuition and medical expenses, gift splitting
, and tax return filing requirements.
is only available if both spouses are either citizens or residents of the United States.
allows a married couple to "double" the annual gift tax exclusion amount.
2513(a), gift splitting
occurs when "[a] gift made by one spouse to any person other than his spouse.
The spouses may elect gift splitting
on a late-filed gift tax return as long as neither spouse has previously filed a gift tax return for that year.
Similarly, gifts made by the transferor's spouse for which gift splitting
will be elected are reported in the lower half of Part 1, 2 or 3 of Schedule A.
2036; gift splitting
does not make W "transferor" of half of the property for estate tax purposes.