Gifting In A Changing Tax Landscape: Do Taxable Gifts Still Make Financial Sense?

In the past, when analyzing whether a client should make taxable gifts, estate planners tended to simply rely on comparing the transfer tax cost of making such gifts with those made at death. Paying the gift tax was assumed to be “cheaper” than paying estate tax, even though the rate was the same, because gift taxes are calculated on a “tax exclusive” basis (in other words, the gift tax paid comes out of the estate). This white paper explores the pros and cons that determine whether making taxable gifts in today’s environment makes financial sense.