If section 2513(a) deems such a split gift
to have come 50% from the husband, does this trigger the section 2036 trap?
Same facts as in preceding example, except that for federal gift tax purposes G's wife consented to a split gift
of the $10 million (see Q 7579).
The gift tax paid includes all gift taxes paid even if the gift was a split gift
where the decedent paid the gift taxes.
If spouses elected to treat the initial transfer as a split gift
(see Q 906), then (1) each spouse may be entitled to reductions if there is a transfer of the IRC Section 2701 interest during their joint lives; and (2) if there is a transfer of the IRC Section 2701 interest at or after the death of either spouse, then (a) the donor spouse's estate may be entitled to reductions; and (b) the consenting spouse's aggregate sum of taxable gifts and gift tax payable on prior gifts are reduced to eliminate any remaining effect of IRC Section 2701 if the consenting spouse survives the donor spouse.
When using the maximum available annual split gift
to fund the premiums for a survivor life policy held in an ILIT, it is important to consider the consequences of one insured dying prematurely.
44) Accordingly, the IRS concluded that one-half of the gift should not be included in the adjusted taxable gifts of the nondonor spouse and the tentative tax should not be reduced by any amount of gift tax payable on the split gift
The split gift
election applies to all gifts made during the taxable year--the spouses cannot pick and choose which ones to split.
A split gift
is a gift made to a third party, in which the gift is considered as made one-half by each spouse.
For this purpose a nontaxable gift means any transfer of property to the extent the transfer is not treated as a taxable gift by reason of the gift tax annual exclusion (taking into account the split gift
provision for married couples-see Q 906) or the "qualified transfer" exclusion (see Q 916).
If a split gift
is made for gift tax purposes (see Q 1530), such gift will be so treated for purposes of the GST tax.
Using a split gift
election, when a husband or wife makes a gift to a third person, the gift is treated as having been made one-half by the husband and one-half by the wife.
section] 2513 often reduces the gift tax exposure: However, if the grantor dies during the QPRT term, the split gift
may result in higher estate taxes than if the gift had not been split because the spouse's adjusted taxable gifts are not reduced by the gift included in the grantor's gross estate.