Gift Tax Exclusion
Definition of "Gift tax exclusion"
Amount, not in excess of $10,000 per year, given to each of an unlimited number of donees free of federal estate tax and gift tax. Each individual can give up to $10,000 to any one donee, or up to $10,000 each to an unlimited number of donees, provided the gift has no conditions attached. A gift completed in this manner will not reduce the donor's marital deduction. Wealth can be transferred on a significant basis free from federal estate tax by careful planning providing the donor is comfortable giving away acquired wealth while still alive. A word of caution: If the gift is in the form of a check, the Internal Revenue requires that the check be paid and cleared by the donor's bank before the gift can be considered complete. Thus, if the check is given in December, but does not clear the donor's bank until January, the gift would be deemed to have been given in the new year and the old year's gift allowance will have been wasted.
Popular Insurance Terms
Judgment decision by the insurance agent concerning whether or not to submit an application. The decision is based on the agent's familiarity with the insurance company's underwriting ...
Ratio of the company's investment in noninvestment grade bonds dividend to its adjusted surplus. This ratio shows how vulnerable the company's surplus is to the market fluctuations in ...
Type of surety bond that is either a fiduciary or a court bond. Fiduciary Bond guarantees that individuals in a position of trust will safeguard assets belonging to others placed under ...
Investments restricted to short-term Treasury bills (T-bills) and repurchase agreements secured by Treasury bills. These T-bills are secured by the full faith and credit of the Unites ...
Measure of the sensitivity of the insurance company's liability to changing policy surrender distributions. ...
Means of distribution that uses general agents rather than branch offices to sell life and health insurance. ...
Detail showing distribution of property coverages written by an insurance company. Illustrates a potential danger of concentration of insured risks. ...
Clause in some disability income insurance policies under which there is a maximum an insured can receive from all sources of disability income benefits. For example, the clause may ...
Representation of ownership rights such as stocks. ...
Have a question or comment?
We're here to help.