The books doesn’t really explain it that well, but what does the acronyms mean?
Rg: what’s g, why is this the receiver return?
Re: what’s e, why is this the giver’s return?
Same thing, what’s the ig and ie in Tig and Tie?
Sorry if I just missed a reading, but if someone can explain it real quick that’d be great!
i= investment
g= giftee (recipient)
e= estate
Basically these questions come down to the differences between the tax rate on the asset if held with the estate versus being gifted. All else being equal if the tax rate is higher on the estate you should gift right away and if it is lower you should keep the asset in the estate. There are other considerations but primarily it comes down to tax rates.
thanks!