Cox, Arthur T.
October 1994
Journal of Financial Planning;Oct94, Vol. 7 Issue 4, p181
Academic Journal
When should taxable gifts be made before death? Conventional wisdom is to delay paying taxes whenever possible, and in many situations this is the appropriate choice. But not always. This paper offers a method for measuring the benefit of making taxable gifts before death by computing an implied rate of return based on the size of the gift. The decision to gift or not thus can be made on whether the rate of return of the taxable gift exceeds the client's expected or desired rate of return, or opportunity cost.


Related Articles

  • Winning the tax game is only half a victory. Blackman, Irving L.; Whitlock, Brian T. // Modern Machine Shop;Aug97, Vol. 70 Issue 3, p36 

    Focuses on human problems associated with taxation of wealth transfer and estate planning in the United States. Important aspects of the basic gift-tax law; Real-life tax case that illustrates the problems and solutions.

  • Talking Tax. Jago, Margaret // International Money Marketing;Sep2004, p18 

    The article discusses issues related to taxation of gifts. The author says that the major advantage of making exempt gifts is that they fall out of the donor's estate immediately for Great Britain inheritance tax purposes. The exemption for normal expenditure out of income applies if a transfer...

  • 6. Taxation: 6.4. Miscellaneous Taxes.  // Doing Business with Spain;2001, p320 

    Chapter 6.4 of the book "Doing Business in Spain" is presented. It discusses miscellaneous taxes imposed under the law in the country. Such taxes include wealth tax, inheritance and gift tax and value added tax (VAT). Wealth tax pertains to a direct and personal tax levied on the net worth of...

  • Gift Wrapping the 1990s. McDevitt, Timothy J. // Journal of Financial Planning;Jan1993, Vol. 6 Issue 1, p6 

    In our October 1992 column, we addressed the enormous gift-, estate-, and generation-skipping-transfer-tax leverage available to clients using various valuation discount -- primarily those for minority interest and for lack of marketability. The underlying premise of that column was that...

  • From Washington: General estate and gift tax developments. Fraley, Jeff // Fort Worth Business Press;10/10/2003, Vol. 16 Issue 39, p31 

    Presents updates on general estate and gift tax in the U.S. as of October 10, 2003. Ruling of the U.S. Internal Revenue Service on gifts to charitable lead trust; Tax discounts allowed to the grantor of a limited partnership interests; Regulations governing the taxation of split-dollar life...

  • Legislation to tackle gift relief-based tax schemes. Lagerberg, Francesca // Accountancy;Dec2003, Vol. 132 Issue 1324, p93 

    This article reports that legislation will allegedly be introduced in the 2004 Finance Bill in Great Britain, to tackle certain tax schemes which are based on gift relief. However, the change takes effect for disposals of shares of securities on or after October 21, 2003. Section 165, TCGA...

  • Bi-partisan bill to phase out estaste/gift tax introduced...  // Insurance Advocate;06/13/98, Vol. 109 Issue 24, p13 

    Reports that the introduced bi-partisan House bill that would phase out the estate and gift tax law has won the plaudits of the Independent Insurance Agents Association of America. Provisions of the bill; Implication of the enactment of the legislation.

  • Gifts which revert to the estate and the three-year rule. Sorkin, Mitchell // CPA Journal;Aug95, Vol. 65 Issue 8, p73 

    Focuses on the use of lifetime gifts to reduce eventual estate taxes. Taxation requirements of gifts; Appreciation or income generated from excluded gifts; Gift splitting; Marital deductions; Possible reversions to the estate and of the three-year rule.

  • Don't look discounted gift trust in mouth. Jelley, Colin // Money Marketing;8/7/2003, p33 

    Focuses on inheritance tax treatment of discounted gift trusts in Great Britain. Role of this arrangements in enabling investors to give away assets but keep the right to an income without creating a gift reservation; Laws relating to gift with reservation; Implications on inheritance tax...


Read the Article


Sorry, but this item is not currently available from your library.

Try another library?
Sign out of this library

Other Topics