Inter vivos gifts and estate taxes

(I know gift taxes apply, but …)

Are estate taxes applicable for inter vivos gifts?

If yes, at who’s rate - the grantor’s estate tax rate or the beneficiary’s estate tax rate?

In all the questions i have seen on this topic, estate taxes are paid by the wealthy grantor on their estate. This is why the transfer of as a gift is normally better, as the estate will only be subject to gift taxes at the income rate of the beneficiary

i think gift tax wil be taxed at the benefcary rate and a bequest is taxed at the deceased rate. that is the hole reason there is a dilemma of when is moste optimal to transfer wealth.

For trusts:

  • if it is an irrevocable trust, i think the beneficiary is responsible.

  • if it is a revocable trust, the grantor is responsible.

Just remember that during-life gift transfers don’t always generate tax liabilities. There are periodic and lifetime gifting allowances to keep in mind.

Btw, do you guys learn the RV formulas for gifts vs. bequests? Couldn’t find an exam where they were tested, but could make sense to know them?

i don’t memorize them i just use common sense