Finding stability amid uncertain estate tax law – Defined-value gifts can limit tax exposure

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Abstract: It’s likely that Congress will overhaul the estate tax regime this year. But regardless of what happens, it makes sense to explore strategies for minimizing gift taxes. One strategy that can be effective is the defined-value gift, which can limit gift tax exposure by providing that any excess value go to a charity or other gift-tax-exempt recipient. The IRS isn’t a fan of these gifts, but they recently have gained approval in the courts, as explained in a sidebar.