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
Annuity that begins payments after a single premium is paid. For example, the annuitant pays a single premium of $100,000 on June 1 of the current year and begins receiving a monthly income ...
Insurance company's total premium income plus investment income. ...
Allocation of monetary resources to equities. ...
Policy used to provide the funds necessary for buy-and-sell agreements whereby an income payment or a series of income payments are paid to the buyer of the disabled partner's interest ...
Plan to control employer's health care cost through the introduction of practice guidelines or protocols for health care providers, and to improve the methods used by employers and ...
Organization of brokers and securities dealers in the over-the-counter market operating under the auspices of the Securities and Exchange Commission (SEC). Its purpose is to enforce, on a ...
Statement in which a life insurance applicant is charged a higher-than-standard premium to reflect a unique impairment, occupation, or hobby, such as a history of heart disease or a circus ...
Act that prohibits insurance companies, group health plans, and health maintenance organizations from establishing lifetime limits or annual limits on mental health coverage that are lower ...
Coverage underwritten on members of a natural group, such as employees of a particular business, union, association, or employer group. Each employee is entitled to benefits for hospital ...
Have a question or comment?
We're here to help.