Chapter 6 Planning and Techniques for Making Gifts

Index

Section 6.1 Basics of Federal Gift Tax
Section 6.2 Gift Tax Lifetime Exclusion
Section 6.3 Generally
Section 6.4 Married Donors
Section 6.5 Other Exclusions
Section 6.6 Deductions for Charitable Gifts
Section 6.7 Marital Deduction
Section 6.8 Deductible Interests
Section 6.9 Qualified Terminable Interest Property
Section 6.10 Deductible Terminable Interest Qualifying for Marital and Charitable Deductions
Section 6.11 Intent, Delivery, and Acceptance
Section 6.12 Complete and Irrevocable
Section 6.13 Consideration Must Be Inadequate
Section 6.14 Subject Matter of the Gift
Section 6.15 Cancellation of a Debt Is a Gift
Section 6.16 Evidence of Cancellation
Section 6.17 Transferring a Future Interest Is a Gift
Section 6.18 Evaluating the Gift
Section 6.19 Estate Tax Assessed if Donor Retains a Life Estate
Section 6.20 Assigning a Life Insurance Policy—Certain Life Insurance Transfers Are Taxable Gifts
Section 6.21 Creation of a Joint Tenancy Usually Constitutes a Taxable Gift
Section 6.22 Creation of a Joint Bank Account Does Not Constitute a Taxable Gift
Section 6.23 Other Joint Account Exceptions
Section 6.24 Joint Tenancies Between Spouses
Section 6.25 A “Sale” May Be a Gift
Section 6.26 Adequate Consideration and Support Matters
Section 6.27 General Powers of Appointment
Section 6.28 Limited Powers of Appointment
Section 6.29 Transferring to a Trustee—Irrevocable Transfer to a Trustee Is a Taxable Gift
Section 6.30 Filing Joint Federal Income Tax Returns—Payment of Entire Income Tax by One Spouse Is Not a Taxable Gift
Section 6.31 Transferring Life Estate, Retaining Reversion
Section 6.32 Cash and Property
Section 6.33 Stocks or Bonds
Section 6.34 Interests in Business
Section 6.35 Notes
Section 6.36 Annuities, Life Estates, Terms for Years, Remainders, and Reversions
Section 6.37 Issues and Principles Regarding Making Lifetime Gifts
Section 6.38 General Considerations for Gift Transfers
Section 6.39 Reducing Tax Paid on Certain Transfers
Section 6.40 Annual Exclusion
Section 6.41 Transfers for Educational and Medical Purposes
Section 6.42 Transfers in Excess of the Applicable Exclusion Amount
Section 6.43 Disclosure Requirements
Section 6.44 Generally
Section 6.45 Gifts by Surviving Spouse
Section 6.46 Transfers Incident to Divorce
Section 6.47 Advantages to Estate Taxes and Probate Expenses
Section 6.48 Loss of Income From Donated Assets
Section 6.49 Implications of Paying Gift Tax
Section 6.50 Effect on Donor’s Applicable Exclusion Amount
Section 6.51 Effect of Gifts on Cost Basis of Asset
Section 6.52 Arrange for Income to Be Taxed to Low-Bracket Taxpayers
Section 6.53 Methods of Giving and Income-Producing Property
Section 6.54 Assignment of Income
Section 6.55 Gifts of Property Having a Low-Cost Basis—Gifts to Individuals
Section 6.56 Temporary Trusts—Revocable Trusts
Section 6.57 Gift of Partnership Interest
Section 6.58 Gifts of Stock—Gifts of S Corporation Shares
Section 6.59 Gift and Estate Planning Implications of S Corporation Changes
Section 6.60 Electing Small Business Trusts
Section 6.61 Electing Small Business Trust Qualification Provisions
Section 6.62 Income Taxation of an Electing Small Business Trust
Section 6.63 Number of Permitted Shareholders Increased
Section 6.64 Will Child-Donee Be Lost as a Dependent?
Section 6.65 Starting Children in Business
Section 6.66 Parents’ Retirement Possibilities
Section 6.67 Why Make Gifts to Minors?
Section 6.68 Donor Must Relinquish Control
Section 6.69 Problems of Control by a Minor
Section 6.70 Parent Has No Legal Control of Minor’s Property
Section 6.71 Donee May Dissipate Assets
Section 6.72 Joint Account
Section 6.73 Control by Parent
Section 6.74 Control by Minor
Section 6.75 Death of Minor
Section 6.76 Co-Ownership
Section 6.77 Control by Parent
Section 6.78 Control by Minor
Section 6.79 Effect of Minor’s Death
Section 6.80 Joint Tenancy
Section 6.81 Sole Ownership
Section 6.82 Control by Minor
Section 6.83 Availability to Use Federal Gift Tax Exclusion
Section 6.84 Practical Tips Regarding Gifts to Minors
Section 6.85 Troublesome Property to Gift
Section 6.86 United States Savings Bonds
Section 6.87 Assets With More Basis Than Fair Market Value
Section 6.88 Assets in Which the Donor’s Basis Is Less Than the Value of an Encumbrance
Section 6.89 Net Gifts
Section 6.90 I.R.C. § 306 Stock
Section 6.91 Personal Residences
Section 6.92 Installment Obligations
Section 6.93 Non-Interest Bearing Loans
Section 6.94 Assets Subject to Favorable Tax Elections
Section 6.95 Applicable Exclusion Amount Phase-Out
Section 6.96 Overview
Section 6.97 Rules Applicable to Corporations and Partnerships
Section 6.98 Targets of New Valuation Rules
Section 6.99 Generally
Section 6.100 Grantor Retained Interest Trusts