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Bill
Bill, Enrolled Agent
Category: Tax
Satisfied Customers: 3153
Experience:  EA, CEBS - 35 years experience providing financial advice
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My brother is the beneficery to some money. He thinks that

Customer Question

My brother is the beneficery to some money. He thinks that when he dies, his spouse will be taxed on the "gift" amount he sends. I have told him he can "give a gift" of up to $1,000,000 in his lifetime and not be taxed. Is this true or will his spouse be taxed?
Submitted: 7 years ago.
Category: Tax
Expert:  Bill replied 7 years ago.

When he dies any amount of assets that he leaves to his spouse will not be subject to gift or federal estate taxes as there is an unlimited marital deduction for assets passing to a spouse. It is true that he can gift up to $1,000,000 in excess gifts over his lifetime to individuals other than his spouse and not have to pay gift taxes. However, the $1,000,000 limit does not apply to any gifts that he makes to his spouse as they are not subject to gift taxes, regardless of the amount.

 

http://www.irs.gov/businesses/small/article/0,,id=108139,00.html

 

http://www.irs.gov/publications/p950/index.html