Constitute completed gift for federal gift tax purposes

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Reference no: EM131214499

1. Which of the following transactions does not constitute a completed gift for federal gift tax purposes?

a. An outright gift of $100,000 to a United States citizen spouse.

b. A gratuitous transfer of $1,000,000 to an irrevocable trust, with a life estate to the grantor's sister, and the remainder to a grandchild.

c. A year-end bonus of $15,000 to the vice-president of finance from the majority shareholder.

d. All are gifts.

20. What are the gift tax consequences if donor transfers $2 million to donor’s former spouse as a property settlement pursuant to a written divorce agreement?

a. There is no marital deduction available if the donee/former spouse is not a U.S. citizen.

b. The transfer is not considered a gift for federal gift tax purposes.

c. There is a gift, and the marital deduction is available in this case regardless of the citizenship of the donee/former spouse.

d. None of the above is correct.

Reference no: EM131214499

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