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2503. Section 2503(a) provides generally that taxable gifts
means the total amount of gifts made during the calendar year,
less specified deductions. Section 2503(b), however, excludes
from taxable gifts the first $10,000 “of gifts (other than gifts
of future interests in property) made to any person by the donor
during the calendar year”. In other words, the donor is entitled
to an annual exclusion of $10,000 per donee for present interest
gifts.
Regulations promulgated under section 2503 further elucidate
this concept of present versus future interest gifts, as follows:
Future interests in property.--(a) No part of the
value of a gift of a future interest may be excluded in
determining the total amount of gifts made during the
“calendar period” * * *. “Future interest” is a legal
term, and includes reversions, remainders, and other
interests or estates, whether vested or contingent, and
whether or not supported by a particular interest or
estate, which are limited to commence in use,
possession, or enjoyment at some future date or time.
The term has no reference to such contractual rights as
exist in a bond, note (though bearing no interest until
maturity), or in a policy of life insurance, the
obligations of which are to be discharged by payments
in the future. But a future interest or interests in
such contractual obligations may be created by the
limitations contained in a trust or other instrument of
transfer used in effecting a gift.
(b) An unrestricted right to the immediate use,
possession, or enjoyment of property or the income from
property (such as a life estate or term certain) is a
present interest in property. * * * [Sec. 25.2503-3,
Gift Tax Regs.]
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