Term
| Estate and Gift Tax Systems |
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Definition
| Tax systems in which a tax burden is imposed on transfers made during life and at death. |
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Term
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Definition
| An increase in value, particularly the amount exceeding the basis of the property. |
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Term
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Definition
| A provision allowing a married couple to treat a gift made by one of them to a third party as having been made one-half by each, provided the non-donor-spouse consents to the gift. |
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Term
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Definition
| A gift to which the donee has an immediate, unfettered, and ascertainable right to use, possess, or enjoy the gift. |
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Term
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Definition
| Any interest or estate in which the donee's possession or enjoyment will not commence until some period of time after the gift is made. |
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Term
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Definition
| Rights granted to the beneficiaries of an irrevocable trust to demand all or a portion of a grantor's contribution to the trust, thereby creating a present interest in the grantor's gift. |
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Term
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Definition
| A trust established for the benefit of a minor that qualifies the present value of trust income for the term of the trust for the annual exclusion. Trust income must be distributed to or for the monr's benefit at least annually. Trust corpus may be held after the age of majority or for the benefit of others. |
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Term
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Definition
| A trust estblished for the benefit of a minor in which transfers qualify as present-interest gifts as long as the gifted property and income from it are distributed to or for the benefit of the minor before the minor reaches age 21, and any amount not spent goes to the minor at age 21 (or his or her estate if the minor is deceased). |
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Term
UTMA/UGMA
Uniform Transfers to Minors Act/Uniform Gifts to Minors Act |
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Definition
| State laws that authorize the transfer of property to a custodian who holds the transferred property for a minor and distributes all property and income to the minor when he or she reaches adulthood under local law. |
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Term
| Gift Tax Marital Deduction |
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Definition
| A deduction allowed for agift made by one spouse to another, provided it qualifies. Outright gifts qualify; life estates qualify if the donee has the right to the income from the property for life and a general power of appointment over the principal. |
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Term
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Definition
| A spouse who is not a citizen of the United States. |
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Term
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Definition
| An increase in the gift tax annual exclusion to a basic amount of $100,000 (indexed for inflation) for marital transfers to a noncitizen spouse. |
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Term
| Gift Tax Charitable Deduction |
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Definition
| A gift tax deduction received for making a lifetime transfer of property to a qualified charity, the value of which is equal to the value of the gift to the extent not already covered by the annual exclusion. |
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Term
| Carryover of Donor's Basis |
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Definition
| Basis of gifted property that is carried over from the donor to the donee. |
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