EP CHAP 5

Question 1

What is the characteristics of a gift ?

Answer 1

given w/o anything in return

Question 2

What is consideration ?

Answer 2

the benefit that each party gets or expects to get from the contractual deal

Question 3

What is the gift tax annual exclusion ?

Answer 3

14,000

Question 4

What are split gift elections ?

Answer 4

husband/wife .. can combine to make 28000

Question 5

What is the lifetime applicable gift tax exclusion ?

Answer 5

2,045,800

Question 6

What is a present interest gift ?

Answer 6

You can use Immediately

Question 7

What is a future interest gift ?

Answer 7

Receipient wait to receive

Question 8

What is the Crummey Provision

Answer 8

permits specified trust beneficiaries to withdraw gifts you make to the trust for a limited period of time.

Question 9

What is a completed gift ?

Answer 9

A gift in which the donor has so parted with dominion and control (in an interest in property) as to leave him no power to change its disposition, whether for his own benefit or for the benefit of another.

Question 10

When are gift tax returns implemented ?

Answer 10

when you go above 14,000

Question 11

How are Gifts to minors handled ?

Answer 11

UTMA ( securities act )

Question 12

What are some transfers resulting in no gift tax ?

Answer 12

political organizations, qualified transfers , child support, payments between divorced spouses, business transfers, gifts to spouse