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(26 U.S.C. 2001). The Federal Gift Tax is set forth beginning in 26 U.S.C. 2501. Generally, the Gift Tax applies to any transfer made without receiving value in return and without regard to intent.
The new tax law increase the amount of the Unified credit against tax. It is 675,000 currently but will increase to a million in 2002 and continue to be increased until the estate tax is ultimately repealed entirely in 2011. The gift tax however will remain at that time with a million dollar credit in most cases. In 2012 the tax will revert back to a $1 million for estate tax as well unless further action is taken...
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