Gift Spotting

Gift Spotting means:
a misnomer inasmuch as gift splitting is a process whereby a husband and wife may combine their annual gift tax exclusions and unified estate and gift tax credits. For example, a husband and wife may consent to jointly give a child $20,000 annually by combining their individual annual exclusions of $10,000 per donor per donee. Gift splitting can be accomplished even when only one spouse has assets sufficient to make the combined gift. Former IRC (check if this IRC provision is current here) §2513.

Example of Gift Spotting:

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Mr. and Mrs. Blair together give $20,000 this year to each of three sons ($60,000 total). No gift tax will be imposed, and these gifts will not diminish the $600,000 lifetime gift and estate tax exclusion.