How does EGTRRA affect Lifetime Gifts?
Unlike the estate and GST taxes, the gift tax was not repealed for the year 2010. You can make tax-free gifts throughout 2010 (and beyond absent changes in the law) to an unlimited number of people as long as each gift does not exceed $13,000 per recipient. Because a husband and wife may agree to combine their gifts, together they will be able to gift $26,000 to each recipient in 2010 without incurring any gift tax or using up their lifetime gift tax exemption. The total amount of lifetime gifts that you can make free from gift tax remains at $1 million for 2010 and beyond.
