A gift-splitting election

Question

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Gift-splitting allows a married couple to split their gifts to effectively use both of their annual exclusion amounts ($15,000 per donee in 2021). Through gift-splitting, the gift is treated as being made one-half by each spouse, even if the property given is owned by only one spouse. This can reduce the amount of taxable gifts of the donor-decedent and, ultimately, their estate tax liability. The other statements are not entirely accurate: (A) each spouse is not required to give property; (C) the annual exclusion amount is $15,000 per donee per spouse, not $6,500; and (D) the election to split gifts does not bind future years, since the election must be made each year separately.

A Gift-Splitting Election