Gifting Growth & History

This page covers the following location(s) in NaviPlan:

Set Goals – Estate Planning – Estate Planning – Gifting Growth & History

Procedures :: Screen Notes :: Related Information

Procedures

ClosedHow do I define gifting growth, history, and tax rates for a beneficiary?
  1. In the Prior Gifts section, enter the total original value of any gifts that will not grow going forward that each client has given to each beneficiary.
  2. In the Prior Gifts (with Growth) section, enter the current value of any gifts that will grow going forward at the after-tax rate that each client has given to each beneficiary.
  3. Enter the rate of growth the gift is expected to earn under Growth Rate. Enter the rate of taxation applied to the growth rate under Income Tax Rate.
  4. From the Historical Data container, enter the amount of taxable gifts made up to December 31 of the previous year under Taxable Lifetime Gifts.
    Note: Only the gift amount should be entered here, not the gift tax or any generation skipping transfer taxes paid.
  5. Enter a credit amount used against gift taxes under Applicable Credit Used.
  6. Enter the amount of gift taxes already paid up to December 31 of the previous year under Gift Taxes Already Paid.
  7. If applicable, enter the total amount of the lifetime generation-skipping transfer tax exemption that has been used up to December 31 of the previous year under Lifetime GSTT Exemption Used.
  8. If applicable, enter the amount of GSTT that has already been paid on prior gifts. Generation-skipping transfers that are above the GSTT exemption amount are taxed.
  9. If the client has a deceased spouse who died after January 1, 2011, and the client has filed an estate tax return, enter the additional exclusion amount to be used in estate planning calculations under Unused Spousal Exclusion.
    Note: NaviPlan assumes that an estate tax return is properly filed following each client's death.

Screen Notes

ClosedTaxable Lifetime Gifts
  • Total amount of taxable gifts the family member has made, up to and including the end of the previous calendar year. For example, taxable gifts may result from gifts to siblings in excess of the annual gift exclusion, transfers of assets into irrevocable trusts, or the transfer of life insurance policies into irrevocable life insurance trusts (ILITs) and payment of the policy premiums.
  • Taxable lifetime gifts include gift amounts that were calculated as part of the lifetime applicable gift exclusion. This information is required in order for NaviPlan to properly apply the applicable gift exclusion.
  • Only the gift amount should be entered here and not the gift or generation-skipping transfer taxes (GSTT) paid. The amount of taxes paid should be entered in the Gift Taxes Already Paid and GSTT Already Paid fields.
  • This amount reduces the amount of exclusion available for funding a credit shelter trust (CST).
  • Note: While the Tax Relief, Unemployment Insurance Re-authorization and Job Creation Act of 2010 legislation is in effect (2010, 2011, and 2012), the credit for previous gift taxes paid will be calculated using the value entered in the Taxable Lifetime Gifts field, not the Gift Taxes Already Paid field. For 2013 and later, the value entered in the Gift Taxes Already Paid field will be used when calculating the credit for previous gift taxes paid.
ClosedGift Taxes Already Paid
  • Note: While the Tax Relief, Unemployment Insurance Re-authorization and Job Creation Act of 2010 legislation is in effect (2010, 2011, and 2012), the credit for previous gift taxes paid will be calculated using the value entered in the Taxable Lifetime Gifts field, not the Gift Taxes Already Paid field. For 2013 and later, the value entered in the Gift Taxes Already Paid field will be used when calculating the credit for previous gift taxes paid.
ClosedUnused Spousal Exclusion
  • Unused Spousal Exclusion is not accessible for clients who are neither U.S. residents nor U.S. citizens. Restrictions apply to clients who reside in the United States but who are not U.S. citizens.

Related Information




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