Estate Q&As Is there any benefit to making
a large taxable gift during one's lifetime?
Yes.
If an individual makes a taxable gift during his or her lifetime, the gift
tax payable on the transfer will be removed from his or her taxable estate.
However, if the individual dies within three years of making the gift,
this benefit will be lost. Section 2035 of the Internal Revenue Code requires
that the decedent’s gross estate include the amount of any gift tax paid
during the three-year period ending on the date of the decedent’s death.
OCTober
9, 2000
Yes.
If an individual makes a taxable gift during his or her lifetime, the gift
tax payable on the transfer will be removed from his or her taxable estate.
However, if the individual dies within three years of making the gift,
this benefit will be lost. Section 2035 of the Internal Revenue Code requires
that the decedent’s gross estate include the amount of any gift tax paid
during the three-year period ending on the date of the decedent’s death.