Tracy is designing a gifting program and is concerned with the buildup of revenue in the estate and taxes. What would you recommend Tracy to do?

Question

Quizplus · Accepted Answer

For clients concerned with gifting programs in which there may be a buildup of revenue in the estate and taxes should opt to give assets with high rates of return. This strategy can help avoid the revenue build up that would be taxed at the donor's rate. It is also important to avoid gifting installment obligation since the donor will have to recognize the entire untaxed proceeds at the time of transfer.

Tracy Is Designing a Gifting Program and Is Concerned with the Buildup