Estates, Trusts & Gift Taxes 4 of 4 (16)

Question 1

Incomplete Gift

Answer 1

A gift of a future interest that is revocable by the donor at any time until the property transfers. Essentially, no rights to the property have been transferred to the donee at all.

Question 2

Portability

Answer 2

Allows for a surviving spouse to apply the decedent’s unused lifetime exclusion in addition to the remainder of the surviving spouse’s lifetime exclusion to future gifts and to the estate upon death.

Question 3

Generation-skipping Transfer Tax

Answer 3

A tax imposed when gifts are given to unrelated individuals more than 37 ½ years younger than the donor or related individuals who are more than one generation younger than the donor, such as grandchildren and great grandchildren, to prevent the avoidance of gift tax.