Definitions for "Federal gift tax"
A federal tax imposed on assets conveyed as gifts to individuals.
A federal tax on lifetime gifts of property in excess of certain exemptions. Under current tax laws, there is an annual $10,000 exemption for each donee where the gifts are gifts of present interest. Life insurance is property for purposes of this tax and is considered in terms of its living value (cash value and/or gift premiums).
A federal tax that is imposed on the transfer of securities, property, or other assets. The tax is based on the fair market value of the transferred assets and applies to transfers valued over $10,000 per individual per year for 1999 (indexed for inflation).