This is the season of giving. So in that spirit, I want to provide some information to you about what it means to "gift" in the legal sense of the word.
The government always wants its share when you transfer property to another individual. When you give property during life, it may be subject to a gift tax.
When you transfer property at death, you may be subject to the estate tax.
Right now, however, you may give approximately $5 million during life or death to another individual without incurring federal estate or gift taxes.
This means that you can …