1. During each calendar year, each taxpayer can exclude certain gifts from the imposition of the gift tax. There is an “annual exclusion” applicable to gifts made to each donee (recipient) during each calendar year. This amount is $14,000 for gifts in 2013 through 2017 and is $15,000 in 2018 (and subject to a cost-of-living increase in future years). Other exclusions that have no dollar limitation include: (1) tuition you pay directly to the educational institution for someone else; (2) medical expenses you pay directly to the health-care institution for someone else; (3) gifts to your spouse; and (4) gifts to a charitable organization for its use. The “applicable exclusion” that is available for taxable transfers during life and at death will not be affected except as to gifts that exceed these exclusions. Gifts that exceed the annual exclusions and the lifetime “applicable exclusion” will trigger a gift tax.
  2. The maximum rate imposed for federal estate-tax is currently 40%. This rate also applies to the federal gift tax and generation-skipping transfer tax. For the rates in prior years, see http://rlklegal.info/advintro.html#ae.
  3. The federal generation-skipping transfer tax (“GST tax”) is imposed at the highest rate imposed for federal estate tax purposes, which is shown in note . For 2011 and beyond, the GST exemption has been the same as the applicable exclusion for estate tax. (See note 2.)
  4. Subject to legislative changes, the maximum rate imposed for federal estate tax purposes is 40%. For the rates in prior years, see http://rushforth.net/advintro.html#ae.
  5. Nevada has a “Rule against Perpectuities” that requires a trust to terminate after 365 years.
  6. See Chapter 15, “Specific Duties of Trusteeship”, Restatement (Third) of Trusts (2007) and Bogerts, The Law Of Trusts And Trustees § 541″.
  7. NRS Chapter 165.
  8. NRS 164.715.
  9. NRS 164.720.
  10. NRS 164.705 et seq.
  11. https://sa.www4.irs.gov/modiein/individual/index.jsphttp://r4lv.com/IRS-EIN.
  12. See Treasury Regulations §1.671-4(b) for more details.