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Brian: You wrote, "When I read the above information, I interpret it to mean that on and after 2006, a donor can gift up to one million tax-free to the donee - unlike the current $10,000 (or $20,000 to a married couple) non-taxable gift."

I beleive that you may be confusing apples and oranges. The 10k/20k is the annual gift exclusion and is recurring. The 1,000,000 in 2006 (curently 650k, I believe, maybe 675k for '99) is the lifetime exclusion. For example, you could give me 650k today and not pay any gift tax; you would, however, have used up all your current lifetime exemption.

I am sure that the regulars will post more knowledgeable answers, but hope this helps in the meantime.

Regards, JAFO
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