Property can be transferred within the family group by gift or at death.One motivation for preferring the gift approach is:
A)To take advantage of the higher unified transfer tax credit available under the gift tax.
B)To avoid a future decline in value of the property transferred.
C)To take advantage of the per donee annual exclusion.
D)To shift income to higher bracket donees.
E)None of the above.

Question

Quizplus · Accepted Answer

Transferring property as a gift allows the donor to take advantage of the per donee annual exclusion, which currently allows for up to $15,000 to be gifted to each recipient without triggering gift tax or reducing the lifetime gift tax exemption. This means that more property can be transferred tax-free within the family group, potentially saving money compared to waiting until death to transfer the property.

Property Can Be Transferred Within the Family Group by Gift