Therefore, the distinction is that the subtraction at item 2 for gift tax is a "tentative tax" (before any offset for
unified credit), whereas item 2 of estate tax is the actual amount payable (after all
unified credits have been used).
They may have an estate well above the
unified credits allowed by the IRS.
While naming a trust as beneficiary provides for efficient use of a couple's
unified credits, it generally results in three income tax disadvantages.
The above charts demonstrate that either Jim's 401(k) or Sally's 403(b) must be used to shelter both
unified credits.
The marital and prorated
unified credits discussed above may also be used to minimize or eliminate the U.
The above charts demonstrate that either Jim's 401k or Sally's 403b must be used to shelter both
unified credits.
The taxpayers also tendered as evidence a fax informing their accountant that they had funded SFLP II and requesting advice as to the percentage of partnership interests they should transfer to the children to maximize use of the gift tax annual exclusion and applicable
unified credits.
21] Third, the premiums would exhaust their unused
unified credits and result in high taxable gifts in later years, thereby further increasing their out-of-pocket costs in the future.
17) The donees must reflect the deemed gift of the lapsed withdrawal right on a gift tax return, reducing their
unified credits.
Taxpayers often sought to capitalize on their use of
unified credits, through varied means.
Today, in assisting these same clients with estate planning, practitioners are confronted with some rather intriguing dilemmas when trying to achieve various tax objectives: [] Fully utilizing
unified credits.
The fact that qualified disclaimers are now possible for joint tenancies with right of survivorship and some tenancies by the entirety is good news for clients who may otherwise find themselves taking unused
unified credits to their graves.
