5 exclusions. Sec. 2503. Thus, lifetime gifts that do not give rise to gift taxes at the time of the gift may increase the net tax due from the estate of the donor by virtue of their being included in the "adjusted taxable gifts" of the estate for purposes of computing the estate tax. The first $10,000 of a gift or gifts made to a donee in a calendar year shall not be included in the total amount of gifts made during the year, but gifts of future interests in property do not qualify for the exclusion. Sec. 2503(b). Under section 2001(e), if a decedent's spouse was the donor of any gift, one-half of which was considered under section 2513 as made by decedent, and the whole amount of such gift is includable in the gross estate of the decedent's spouse by reason of section 2035, then such gift shall not be included in the adjusted taxable gifts of decedent. Generally the gross estate includes any transfers of property made by a decedent within the 3-year period ending on the date of death, section 2035(a), but that rule has been substantially narrowed for decedents dying after 1981. The general rule now does not apply to such decedents unless within the 3-year period the decedent made a transfer of an interest in property that is includable in the estate under section 2036, 2037, 2038, or 2042, or would be included under those sections had the interest been retained by decedent. Sec. 2035(d). In the case at bar, no part of the gift made in 1986 of the interest in real property owned by decedent'sPage: Previous 1 2 3 4 5 6 7 8 9 Next
Last modified: May 25, 2011