Question

Property can be transferred within the family group by gift or at death. One motivation for preferring the gift approach is: a. To take advantage of the per donee annual exclusion. b. To shift income to higher bracket donees. c. To take advantage of the higher unified transfer tax credit available under the gift tax. d. To avoid a future decline in value of the property transferred.

Answer 1

Answer: a. To take advantage of the per donee annual exclusion.

Step-by-step explanation:

One motivation for preferring the gift method when transferring property within the family group by gift or at death is to take advantage of the per donee annual exclusion.

It should be noted that the annual exclusion is referred to as the amount of money that can be transferred from one individual to another individual as a gift and in this case, a gift tax won't be charged on such gift.