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
Insured's income prior to the disability minus the insured's income after the disability. ...
Additional amount of life insurance above that provided by the employee benefit plan (standard group life plan) that may be chosen by the employee. A limit is usually placed on this maximum ...
Latin phrase meaning "to stand by the decisions." This legal doctrine under common law requires courts to rely on precedents, or previous decisions, when deciding disputes unless there is a ...
Insurance policy for which the required premium has been paid. ...
Extra percent of interest credited to an annuity during the first year that it is in force. This extra amount is above the interest rate to be credited beginning with the second year and ...
Creditor with a documented claim on a specific asset of a debtor. ...
Separate account created by the Tax Relief Act of 1997 and named after Senator William Roth Jr. of Delaware. A working individual may contribute up to 100% of compensation or $2000. The ...
Trade association of property and casualty insurance companies that do not have membership in a rating bureau. These companies do not follow standard rates and forms authored by a rating ...
Liability Insurance is a type of coverage present in Home Insurance as well as other fields of insurance. In Real Estate, Liability Insurance refers to coverage protecting the insured from ...
Have a question or comment?
We're here to help.