Marleen is Tasha’s elderly mother. Tasha and Marleen meet with the Marleen’s financial advisor to get a better understanding of Marleen's estate and financial planning. Marleen has recently updated her will but Tasha fears there may be gaps in her mother's planning. In light of Marleen's poor health, which of the available estate planning devices should Marleen consider adding to her overall estate planning?

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George, who is unmarried, made the following gifts in 2020. The gift tax annual exclusion has not been previously used for any of the donees:

■ An antique chair (valued at $16,000) to his fiancée, Amy

■ Cash to his mother, Anita, in the amount of $14,000
■ $30,000 to Helping Hands, a charitable organization
■ Bonds with a value of $21,000 to his niece, Lucy                                                                                        

■ Certificates of deposit worth $6,000 to his uncle, Larry                                                                                                      
Which gifts are subject to gift tax? How much of George’s lifetime gift tax exemption will he be required to use to make these gifts?

Answer rating: 100% (QA)

Gifts that are subject to gift tax 1 Anitque chair but only 1000 of antique chair is taxable The rea... View the full answer