Gift taxes -- 10k limit doesn't apply for estates less than $600k

From: <Memills@aol.com>
Subject: Gift taxes -- 10k limit doesn't apply for estates less than $600k
Date: Wed, 29 Jul 1998 16:34:04 EDT

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In a message dated 7/29/98 9:39:48 AM Pacific Daylight Time, rbhumbla@ford.com
writes:

> As you must have learned by now, the $10,000 is an annual limit on amount
you
>  can give to any single individual.
>  
>  The $600,000 is the lifetime limit on the total amount you can gift away
>  without tax to all individuals.  This is in addition to the $10,000 per 
> person
>  per year.
>  

If the amount of the gift and estate is less that $600k,
the following from the Nolo Press website
(http://www.nolo.com/ChunkEP/ep81-85.html)
suggests that there will be no gift taxes, even if the amount given to
an individual in one year is more than $10k (but less than the $600k total
exemption):

Gift and estate tax isn't actually paid until the exempt amount is used up,
either by making  taxable gifts during your life, leaving property at death or
a combination of the two. This means that people with estates likely to be
worth under $600,000 don't ever have to worry about paying gift tax, even
though a federal gift tax return must be filed for any gift over $10,000 to a
person per year.



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