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Donor motivation for making lifetime gifts

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In spite of legislative changes which phase out the estate tax, considerable motivation continues to exist for making lifetime gifts. Explain this motivation in the light of the following:

a. Availability of the per donee annual exclusion.

b. Income tax considerations.

c. Future estate tax considerations.

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Solution Summary

The solution lists 13 reasons in response to the questions about estate tax and annual exclusions.

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Motivations for making gifts:

a. Availability of the per donee annual exclusion.

1. To encourage savings for the recipient
2. To fund education for future generations
3. To transfer assets to future beneficiaries before death
4. To fund trusts for beneficiaries
5. To transfer income ...

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