Please describe generally how the federal gift and estate tax operates, and discuss how individuals use...

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Accounting

Please describe generally how the federal gift and estate taxoperates, and discuss how individuals use the planning process tominimize its cost. I need approximately 2 paragraphs. Thanks!

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The IRS characterizes gift tax as a tax put on an exchange of property when no cash is traded all the while For instance a grandparent exchanging 15000 to a grandkid after graduation from school is viewed as a gift according to the federal government In any case a gift esteemed at 14000 or less to a solitary individual in some random year is absolved from federal gift tax Understanding when the gift tax is forced is more mind boggling than just perceiving the yearly gift limit however Doug Martinson a lawyer work in estate arranging with Martinson and Beason PC in Alabama clarifies It is a misnomer that as long as the gift is beneath as far as possible no tax is owed See Answer

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