Can someone tell it says since erica’s estate will not be subject to estate tax, the gifts further reduce future estate tax for Gondos . How does no estate tax for erica help Gondos to reduce future estate taxes? I am not able to connect this …May be i am missing any point here??Also how can this be the reason to favor gifting today ?
The language is a bit odd. The Gondos want the money to go to Erica’s son, so they could give it to him as annual gifts, or give it to Erica, who would, in turn, give it to her son. The point about Erica having no estate tax is that they can give the money to her and she can leave it to her son in her will without having to pay additional tax. In the mean time, her son doesn’t have access to the money to squander it on video games (or whatever).
I understand what you say but even if money from Gondos is given after paying estate tax by Gondos , erica don’t have to pay her estate tax when giving it to her son . so how having no estate tax for erica help gifting today?