One way to minimize the value is to make lifetime gifts.
Some lifetime gifts that do not trigger a gift tax include:
Of course, instead of making lifetime gifts, people can name charities as beneficiaries in their wills.
For example, leaving the money in a will may result in less money in the family's hands over time than making a lifetime gift.
Doing this now is a great way to make the most of the $1 million lifetime gift exemption.
The Plaintiff argued, to no avail, that he did not intend to make a lifetime gift to defendant.
The change in the law takes away the incentive to make lifetime gifts of such assets.
This was justified on the grounds that, since lifetime gifts were exempt from inheritance tax, there was no longer double capital taxation.
Inheritance tax is levied on the value of a deceased's estate on the date of death, with certain lifetime gifts added back in.
By putting her house in a 10-year trust, for example, she would still "use-up" part of her $600,000 lifetime gift and estate tax deduction.
