Furthermore, unmarried couples are not eligible to use the Deceased Spousal Unused Exemption Amount or split gifts
on a federal gift tax return.
The return indicated that the gifts were split gifts
and claimed annual gift tax exclusions of $720,000 for each of the Mikels ($12,000 per beneficiary multiplied by 60 beneficiaries).
Eve can file a gift tax return (IRS Form 709), on which Brett gives his consent to split gifts
, so Brett has made a $14,000 gift to each person for tax purposes, if not in reality.
In cases where only one spouse has significant assets and the couple wants to use both spouses' exclusion amounts, split gifts
2gm) Split gifts
allow spouses to, in effect, utilize each other's annual exclusions and exemptions (see Q 7577).
135) Under such a presumption, servicemembers who give third parties gifts like cars, which were acquired during the marriage, may find such gifts classified as split gifts
1) Returns must be filed if a married couple elects to split gifts
for the year (Q 906).
can be made for purposes of the GST tax.
For 2009, the exclusion is $13,000 per recipient ($26,000 if you split gifts
with your spouse), up from $12,000 last year.
The premature death of one of the insured(s) of a TOLI survivor life insurance policy will reduce the ability to split gifts
in the future, thereby limiting the amount of annual exclusion gifts available to fund future premiums.
5 Years Annual Exclusion $12,000 (in 2007) Split Gifts
Yes Number of Donees 5 Annual Gifts ($12,000 x 2 x 5) $120,000 Donor's Projected Estate Tax Bracket 45% (in 2007) No Growth Total Amount of Gifts ($120,000 x 43) $5,160,000 Potential Estate Tax Savings (45%) $2,322,000 With Growth Annual After-Tax Return on Gifts 4% Value of Gifts at Life Expectancy $13,729,545 Potential Estate Tax Savings (45%) $6,178,295
Gift Processing--Manages a broad range of gift types, including straight donations, pledges, recurring gifts, split gifts
, soft credits, gifts of stock, and gifts in kind.