Okay, I asked this on the estate board, but since Delta1 is giving advice here, I'll cross post:
I was aware of two, and now three, things, but I don't understand how they intersect.
1) Annual gifts of (currently) $12,000. Each person can give this amount to as many people as they want (as far as I know).
Is there some limit to a lifetime total on these gifts? IF MIL gives her daughter and son-in-law $24,000 per year for 15 years is she exceeding a limit?
2) Estate tax exemption. Currently $2 million, going up in 2009, eliminated for 2010 (rich people watch your back year) after which is conjecture.
As far as I know, the $12,000 per year given while alive is irrelevant to the $2 million exemption once the person dies.
3)Uniform tax credit. Like what? It says $345,000 lifetime exemption, provided you file the gift tax form.
Does this $345,000 include those $12,000 per year gifts? Does it have anything to do with the $2 million estate exemption? Or is it something completely different?
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