Estates and Gift Transactions

Question 1

Annual exclusion gift

Answer 1

the gift must be all of the following:

• a present interest
• complete
• under 14,000/28,000 per donee (unless paid directly for medical expenses and/or education expenses and/or paid to charities

There are four items that qualify for unlimited exclusion from gift tax and qualify to be excluded from being reported on a gift tax return:

• payments made directly to an educational institution for a donee’s institution
• payments made directly to a healthcare provider for medical care
• charitable gifts
• marital transfers

Question 2

Lifetime gifts

Answer 2

5,490,000 is the maximum amount of a descendants taxable estate is effectively tax free

2,141,800 is the applicable estate and gift tax credit amount (or the amount of the tax avoided) for a tax fee transfer of 5,490,000