My wife and I are having a debate. We would like you to consider the estate & gift tax
situation in 2008 (not today.) In 2008 let's say a single person had an estate worth $6,000,000. In 2008 the estate tax
exclusion was $2,000,000 and the gift tax exemption was $1,000,000. If during their lifetime, someone gifted $1,000,000 (and used the gift tax exemption) When they died the exclusion for the $1,000,000 would go against their estate tax and they, in essence, would only have a $1,000,000 estate tax exclusion. In another words, would your taxable estate
be $4,000,000 or $3,000,000?
We're talking about Federal tax